Monthly Archives: November 2013
Negotiating with the “Enemy”
Creditors
Many consumers don’t realise it, but the information provided to a credit agency from a creditor is completely the decision of that creditor. For example, a creditor is under no obligation to report either positive or negative information. This means you have the potential to negotiate with creditors in terms of the information they give to credit agencies. So make sure when applying for a loan in Australia you read carefully the Privacy Policy section.
Many consumers don’t understand this concept, and rather than working with creditors to create manageable payments, instead opt to make no payments at all. It’s not like casino gambling, this needs to be planned very carefully.
The first step to successful negotiation is to always take calls from creditors. When their calls are ignored, they’re likely going to assume you’re not going to pay your debts, and they may pursue further action. By maintaining communication, you can send the signal that you’re willing to pay, which will make them more receptive to negotiation in many circumstances.
When you begin the negotiation process, it’s also important to know how much you’re going to be able to realistically pay. Create a budget before attempting to negotiate, so that you don’t overextend yourself in the process. Knowing what you can afford will give you a good starting point to work with creditors.
Don’t go into the negotiation process thinking anything is going to be unacceptable. Many creditors just want some form of payment, so this may end up being only 50 or 70 percent of the original debt, and this can often be paid through either a lump sum or a payment plan such as the one from parhaatkasinosivut.co, check it out for more details.
It’s also important to understand exactly what a creditor is saying, and get all agreements in writing. Many creditors will try to intimidate the consumer with legal jargon, or create unreasonable payment plans, so combat this by taking the time to listen and comprehend what’s being offered, and then, once an agreement is reached, asked for all the details in written documentation.
Debt Management Programs – Do they really help you?
With the bad state of economy, the last couple of years have seen a real boom in the debt management industry, especially in the Australian Payday Loans Online industry. Various companies are now offering to manage your debts for a small fee – all you need to do is pay them a monthly fee, and they will devise a debt management program, negotiate with your creditors and distribute your available funds among them.
bad credit loans
It sounds so simple, but is there a catch? Many people make a mistake of believing that a debt management program is a miracle worker – they let the professionals manage their loan repayment and keep spending as before. This is a big mistake, because unless you change your spending habits and carefully adjust your budget to your current financial circumstances, you will never be free of debts.
Debt management programs can help you if you are in a hopelessly difficult financial situation that isn’t likely to improve soon, for example in the case where you lose a lot of money, like at the casinos or lotteries. When stuck with the credit card debts, debt management is a good choice if your financial problems are long-term, and especially if you cannot qualify for a credit card hardship program.
With the help of debt management, your debt should be consolidated, allowing you to repay with small monthly amounts over the longer time period. Typically, the company you hire to do your debt management should be able to negotiate better payment terms. Lower interest rate percentage can be a big help when dealing with a debt you are bound to be repaying for months (or years) to come.
So, are debt management programs helpful? Yes, but only in some aspects:
– When it can be better to let a neutral third-party negotiate with your creditors.
– A professional will know how to strike the best deal with your creditors.
– If you’re unsure where to start, DMP can create a debt management plan for you.
Make sure you find a good debt management program when you sign up to the casinos.