HOW TO APPROACH YOUR CREDITORS WHEN HAVING MONEY PROBLEMS

More and more people are running into financial difficulties nowadays.

WHAT TO DO IN SUCH A CASE.

Rather than have sleepless nights, approach your creditors for re arranged monthly payments with smaller instalments or longer repayment periods.  Most of them will be glad to assist should they see that you are still willing to pay and not just stop doing so.  Although you may be scared to do so negotiating with them is really your best option.

You may have unexpected setbacks like huge medical bills or other unforeseen expenses.  Ask your creditors if you can skip payments for a few months, or if possible pay reduced instalments until you are back on track again, undertake to resume full monthly instalments as soon as it is financially possible for you, or even try and pay more than the instalments to make up for the arrears and thereby also save on extra interest.

NEVER RUN AWAY FROM YOUR OBLIGATIONS.

By not addressing the issue you will make things much worse.  Legal steps can follow, judgement and garnishee can be taken against you resulting in instruction from the courts to deduct from you salary monthly.  This will harm your credit score and overall credibility tremendously. 

When receiving your bonus or any other lump sum settle your debt before anything else.

ASK QUESTIONS.

Ask if you will have to pay higher interest and if so will it be reduced again as soon as you start paying full regular monthly instalments again. You may be charged higher interest rates however some creditors may try and take advantage of you by charging extremely high interest rates.  Think carefully before signing any new agreements should it look like it can worsen your situation.

WHAT IF THEY TURN DOWN YOUR REQUEST?

Do not give up hope; ask to speak to the superior of the person you are dealing with who may have higher authority in granting your request.  If you and your creditor cannot come to an agreement the first time around keep on pursuing the matter every few days as this can just convince them you are serious to address the problem and are not running away from your responsibilities.

DOES PAYING UPFRONT FEES GUARANTEE YOU A LOAN?

Some so called Loan Finders charge upfront fees promising to look for credit on your behalf from different loan providers.

By paying the fees many people are under the impression that the loan is a certainty if the fees were paid. 

These unscrupulous lenders and loan seekers take advantage of the consumer who may suffer from a bad credit record already and will do nearly anything to get assistance, as these funds are usually not refundable if a loan is not granted. 

How do the get away with it?

Very easy, they found a legal loophole and may offer you some limited “legal advice” and will then claim the upfront fees was charged for that reason.

What to do?

Rather look for the loan finders, lenders who will also seek for credit on your behalf who has your best interest at heart and is there for the consumer in distress.  Always read the fine print and if you do not understand it ask questions until you are satisfied.

All service providers are not bad; for the majority the person in need as their first priority.  They may ask you an initiation or service fee that will be incorporated to your contract.  As they are really trying their best and look all over for credit on your behalf they often do not get any commission from the bank or service provider and therefore these charges.

What You Need to Know before Applying for a Bad Credit Loan.

Make sure you are fully aware of all the Pros and Cons for before applying for any loan, irrespective of what type of loan or what amount you may need.

What age must one be?

The requirements are usually from 18 to 65.  If one fell outside this age group you will not qualify for a loan.

What about the costs involved?

As the service providers for this type of loan is taking a high risk by lending money to someone with a poor credit history these loans is much more expensive to pay back due to the high interest charged.  Only apply for such a loan in emergencies and not for luxuries.

What happens if I default on these loans?

By paying regularly and on due date you can regain a good credit record again as the people will see that you are keeping to your commitments and your credit rating will improve. By defaulting you will shoot yourself in the food as no lender will assist you again and you will be considered as a consistent bad payer.

Does one need an active Bank Account?

Yes you need a savings or cheque account where your monthly salary reflects.  These will proof to the money provider that you indeed have a regular income.  For this same reason they will need your latest salary advice as well.

Ask what you are signing for.

No matter how hard up you are for the money make sure you understand all the fees and terms and conditions of the contract. Also query any upfront fees charged as these do not guarantee that you will definitely get a loan.

Keep these tips in mind and you should not have unnecessary problems and frustrations.

 

Apply for a Loan Online, is it safe?

When your time is limited or you just do not feel like wasting time you could rather spend with your families and friends this is definitely the best option for you.

Just make sure you are using lenders that are registered with the NCR when doing this as they do have to adhere to certain rules, if not they can be exposed to huge fines or even losing their licences.

A great bonus is that you do not have to go in to their offices as most of them work via fax or email so your original documents stay in your possession.

You will save time and stress by going this route.