Everyday, we hear tales in the media (mainstream, electronic, take your pick) about how consumer debt is fast snowballing out of proportions. All of this has been fueled by an increasingly consumerist culture and everyone is trying to buy everything they can no matter whether they can afford it or not. Unavoidably, as a consequence, many people will not be able to service these debts and meet their financial commitments. So what does happen to these people that give in to the financial dark side? Mortgages, loans and credit card debt; it forms the perfect trifecta that has felled many a person.
It is an amazing phenomenon to see in itself. There are just so many examples to find of people that have found themselves ensnared in the web of financial difficulty, the black widow that are their creditors closing in with fangs bared. And yet there are just so many people that follow the same path only to fall into the same trap, and these financial difficulties are almost always difficult to get out of. Little wonder then that we have seen a sharp rise in the number of insolvencies and bankruptcies sweeping across the nation and the world.
Give the banks and all the other financial institutions some credit; they are reasonably intelligent beings and they can begin to sense quite well when someone is not going to repay their debts in a timely fashion or maybe even at all. Many banks are now beginning to turn a profit, but that doesn’t mean that banks will turn a blind eye to not being able to recoup their money. Perhaps this can explain why many people are looking towards secured loans in order to be able to meet their financial commitments. This allows them to bring all their debts under one umbrella and make smaller monthly payments that would allow them to still meet their obligations.
The thing with loans of this kind is that they are very often repaid over lengthy tenures, often running into several years and the longer these loans are the more you fork out by way of interest. If you happen to find yourself struggling to meet your financial commitments, don’t try and face up to it alone. Get yourself some sound financial advice either from companies that are setup just for this purpose or talk to a local financial counselor who can offer a solution best suited to your situation. Once you start falling behind, your lender will start to get after you and try to constantly get you on the phone and send you letters aplenty (not of the lovey-dovey kind, I’m afraid). Don’t be afraid to constantly talk to your lenders and appraise them of your situation because they will try and restructure things to give them the best chance of receiving a payment.
Don’t do your best “Ostrich with head in the sand” impression (even if it does get everyone laughing at those parties you did it at) because it’s a bad idea. Not making payments will see you falling further and further back with payments and arrears will keep on swelling. But whatever you do, try to not let the responsibility of collecting your debt fall to a debt collection agency for they will aggressively pursue all options when it comes to getting that money out of you. The lucky ones run into debt collection agencies that negotiate payment plans and one off settlements, the less fortunate will find themselves bullied and intimidated. Try to make your payments if only to keep your credit score unaffected. It’s a much better course of action that just shutting your eyes to the grim reality of the situation.
You may like to discuss with me about financial plan for your business.
It is an amazing phenomenon to see in itself. There are just so many examples to find of people that have found themselves ensnared in the web of financial difficulty, the black widow that are their creditors closing in with fangs bared. And yet there are just so many people that follow the same path only to fall into the same trap, and these financial difficulties are almost always difficult to get out of. Little wonder then that we have seen a sharp rise in the number of insolvencies and bankruptcies sweeping across the nation and the world.
Give the banks and all the other financial institutions some credit; they are reasonably intelligent beings and they can begin to sense quite well when someone is not going to repay their debts in a timely fashion or maybe even at all. Many banks are now beginning to turn a profit, but that doesn’t mean that banks will turn a blind eye to not being able to recoup their money. Perhaps this can explain why many people are looking towards secured loans in order to be able to meet their financial commitments. This allows them to bring all their debts under one umbrella and make smaller monthly payments that would allow them to still meet their obligations.
The thing with loans of this kind is that they are very often repaid over lengthy tenures, often running into several years and the longer these loans are the more you fork out by way of interest. If you happen to find yourself struggling to meet your financial commitments, don’t try and face up to it alone. Get yourself some sound financial advice either from companies that are setup just for this purpose or talk to a local financial counselor who can offer a solution best suited to your situation. Once you start falling behind, your lender will start to get after you and try to constantly get you on the phone and send you letters aplenty (not of the lovey-dovey kind, I’m afraid). Don’t be afraid to constantly talk to your lenders and appraise them of your situation because they will try and restructure things to give them the best chance of receiving a payment.
Don’t do your best “Ostrich with head in the sand” impression (even if it does get everyone laughing at those parties you did it at) because it’s a bad idea. Not making payments will see you falling further and further back with payments and arrears will keep on swelling. But whatever you do, try to not let the responsibility of collecting your debt fall to a debt collection agency for they will aggressively pursue all options when it comes to getting that money out of you. The lucky ones run into debt collection agencies that negotiate payment plans and one off settlements, the less fortunate will find themselves bullied and intimidated. Try to make your payments if only to keep your credit score unaffected. It’s a much better course of action that just shutting your eyes to the grim reality of the situation.
You may like to discuss with me about financial plan for your business.
One of my friend has not made payments on time and then go for the settlement and that make his name in the black list, thus now hes not able to get any new loan or facilities. you have mentioned very good points for this. keep sharing..
ReplyDeleteVery well explained and really looking forward see more like this...
ReplyDelete