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.