Loans have become the way of life for most of the Americans. Large scale use of credit cards and the huge credit card debts on the individuals speaks of the way people are trapped in their life dealing with their debts. In fact, any situation which they are faced with a cash crunch, simply guides them to take a new loan with a thought that they will make the repayments in the time to come. However, when people take these decisions , they give little or no heed to the thought that situations like recession could pop up ruining their finances too.
What to do when you are faced with a real bad situation and have nowhere to go? Will it not be prudent to fight back. Checkout what your debts are like and then take steps to overcome them. Channelize whatever funds you have towards debt repayment so as to make yourself more comfortable with the financial situation. Here are certain steps which can really help you deal with too many loan repayments that you have to deal with.
Contacting Your Creditors
If you are missing on your debt repayments or simply skip your payments, it will bring a lot of worries for your creditors. It is best to take a proactive approach into dealing with the situation. You can talk to the lenders directly and let them know about your financials. You can ask them to restructure your personal unsecured loans or provide a repayment plan which can be affordable for you.Here is what you need to do.
Do a Self Appraisal
Before you even talk to the creditors, arrange your debt details. Once you know which are the debts that you can clear immediately with the available resources and the ones which require maximum attention, you can talk to the creditors for the waivers on the ones you cannot take care on your own. Other than debt repayments you should also look at your expense pattern and try and locate the expenses without which you can live and those which can add substantially to your repayment plans. The whole idea behind this plan is that you prepare yourself before you talk to the creditor.
Your loan restructuring proposal should clearly state the financial position. Whether the crisis faced by you is temporary or permanent and what is the solution you have come up with. Having all this incorporated in your proposal can prevent you from forgetting the same when you come to the discussion table with the creditors. You should be clear about what you want? Do you want your monthly payment to get lower and for what time period? Will you be fine with the lower interest rates or would like the creditor to waive off the late fees and the penalties before getting to the final amount to be paid by you?
Making the Call
It is of great importance to hit the right cords when it comes to dealing with the creditors. Once you call up the creditors office, politely introduce yourself and get to know the person on the other line to connect you the specific entity you are looking for. Once you successfully contact the desired person, quickly but diligently make them understand the purpose of your calling. Let them know your current financial state, how it is difficult for you to continue the repayment of the debts and how you propose to get out of it without harming the creditor much.
One has to remain cool, calm and patient while dealing with the creditors. Since the creditors are required to part away with their profits and amount due partially in most of the cases, they are not going to get convinced easily. It is therefore a lot essential that you deal with them with a lot of patience. Coercing or forcing the creditor to accept your proposal is in no ways going to help you.
Once you have reached a mutual agreement with the creditor, make sure you stick to whatever you commit. Get every commitment in writing and keep each one of them carefully for future reference. This might be required in case you approach a lender for loans.