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When you’re in debt, one of the things you’re most likely to develop an instinctual fear of is when your creditors get in touch. It can get to the point that you might even get a little anxiety about every phone call or letter through the door. However, you don’t need to fear the creditor. By taking the initiative and getting in touch, you can actually give yourself some breathing room.
Don’t ignore them
The biggest mistake is to simply avoid their calls and ignore their letters. One of the things you need to know about creditors is that you may have some wiggle room to sort out a deal that allows you to pay your way out of debt more manageably. If the creditor can’t solve the issue with you, however, then debt collectors will be coming instead, and they are much harder to strike a deal with.
Negotiate with them
As mentioned, there is a potential for some wiggle room and some relief when you’re dealing directly with your creditors. In most cases, they would rather get as much money as they can back rather than having to rely on debt collection agencies, who they have to pay. Look at some of the tips for negotiating with your creditors. You might be able to get them to take a lowered lump sum payment of the initial loan or to extend the loan period so you can more reliably pay it all back.
Enter a formal agreement
If initial negotiations aren’t working out, then you may be able to work out an agreement by getting a third party involved, such as with an IVA. What is an IVA? Individual voluntary arrangements are organised with the help of debt services, that can freeze interest and create a payment plan over a set period. It’s a good way to make sure that both sides are satisfied, you’re still held liable for your debts but you can pay them off more reliably.
Move your debt elsewhere
If you’re simply finding it too stressful to deal with multiple creditors, then you might be able to tidy things up a bit. Applying for a loan such as a debt consolidation loan could see you moving all of your debts to one creditor. It should be done with the most care, making sure that you’re not paying too much more than you would originally, but it can also be a great way to cap off growing interest rates.
Don’t let them push you around
If you think that your credits have been taking part in bad behaviour, such as calling multiple times a day, late in the night, or have otherwise harassed you, then it’s important to know what they’re actually allowed to do. You may have a legal case against them if you can prove that they have been applying undue pressure when chasing a debt.
No matter what, don’t fear dealing with your creditor. The sooner you take control, the better it will be for you.