Having an encounter with sudden financial requirements or maybe an emergency situation that requires money to consolidate debt is nothing uncommon. In many such situations, seeking financial help from friends, family, financial institutions is the first step that one takes. But this loan amount needs to be returned with interest in certain time. However, what if you are unable to pay off your debts? When people who have taken money are unable to pay back the money, then it leads to further financial trouble. If you have debts and are unable to pay it at the decided time, it becomes important to take certain measures and learn how to deal with the creditors. Let’s see what step one needs to follow in case if he/she is going through debt problems and needs to consolidate debt.
Rules and regulations for debt collection
If someone is not able to pay his/her debts, creditors have the full rights that they can contact them by e-mail, phone or by visiting their home. But, with this they need to keep certain rules in their mind. All the debtors have certain rights which should be abided by all the creditors. While most of the time all creditors abide by the rules but sometimes things may go wrong. One cannot go out these rules and regulations and collect money.
Which debt to pay first – Decide
One needs to select the bills according to their priority. The debts which have a much bigger loss on being missed should be on the top of the priority list and the ones with lesser loss can have places later on. Paying debts without any planning or without checking which one is more important to pay one can end up having problems. Bills with bigger loss need to be paid at the very first stage, for eg. If one will avoid paying the mortgage with some other bill they might lose their home.
Asking creditors to write off debts
In a situation where you know that nothing is going to change for a while, like as unable to work due to some accident, or having an illness which is not allowing you to work anymore. In these type of situations you know that you will not be able to pay your debts, one can talk to the creditors and ask them to write off your debt fully or partially. Things might change by explaining your situation or having a positive approach to the creditors, they might get ready to make you free from your debt completely and if not they can at least write off partially to make situations little better.
Sample letters to the creditors
In the case if situation is getting really worse between you and creditors and they do not know about your situations, that you are unable to consolidate debt one can write template letters to the creditors it has all the column where you can include your personal details and tell creditors about the critical condition you are in right now. And then one can negotiate the right time when you will be able to pay your debts.
These are some of the ways which can give you some relief during debt problems and you can plan better accordingly.