Borrowing money, whether it is from a lender or even from a friend or family member, always relies on trust. Trust from the lender that the debt will be repaid in full. Trust that terms will be kept to. Thus if you are struggling with debt, it can add extra stress to feel that you have let people down. But ignoring problems is not the answer.
Tips If Struggling With Debt – Communication
For many lenders, a primary problem is not people not repaying loans, but them refusing to address the situation when it occurs. Borrowers stop communicating with them and when they try to reach out to them, they are unable to. Reasons may be valid, such as an illness or relocation, and re-establishing communication becomes difficult. But often they simply try to ignore their problems. They avoid their lenders deliberately and this is the worst approach to take.
Tips If Struggling With Debt – Why people ignore debts
The biggest reason is simple. It is because defaulters are afraid to face the consequences of not being able to pay what they owe timeously. Thus they just choose to ignore the debts, turn a blind eye to the world.
Shame is often an issue too. Plus the misguided belief that ignoring the problem may make it go away, as the lender “gives up” on pursuing a debt. This is not going to happen. That is why there is nothing to gain by ignoring debt problems. If you know you are struggling to repay debts, then contact your lender immediately. more on that below.
What you can do?
Here are steps you can take to ensure that you stay in your lender’s good books, without having to avoid them or worry that they will pressure you and bring in the bailiffs.
Firstly, list the people you owe money to. Write everything down so you know exactly where you stand. Note the total amount. This allows you the opportunity to budget accordingly. you see in stark terms how much you have already paid and have to pay. t may motivate you to save up more.
Talk to lenders individually
Pick up the phone or send them an email. Explain your situation, honestly. Talk to them and explain carefully and calmly why you have not been able to make your payments on time. You must prepare for the chance that they will not honour or accept your reasons. But they are more likely to trust you because you made contact.
Ask them for a workaround. A typical compromise would be for them to allow you to make repayments at a time that is more convenient for you. This may however incur an added fee or increased interest rate. Whatever is agreed, do your best to pay. You do not want to be tagged on your credit report as a non-payer
Ask for help
Lenders will always try to help you in coming up with a plan to help you pay off your debts. As experts in their field, they also can provide you with valuable advice to help improve your financial health.
