Don’t Bluff Your Creditors

When approaching your lender to make an offer of reduced debt repayments, it’s best to be completely honest and offer them as much as you can realistically afford to pay month by month.

Whatever happens, don’t try to call their bluff.
You might think that the best thing to do is to become ballsy about your situation. After all, you know that they dont want to take legal action (because they stand to recover less of their money), and they know that you know this.

So you brazenly call your lenders bluff. You ask for interest to be suspended and then offer them a ridiculously low monthly repayment, backed up by the threat if you want any more then Ill file for my own bankruptcy and youll get nothing.

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Great idea? Not quite!

Most lenders will have heard this type of threat every day of their working lives. Its just defensive bravado that will make your position worse.

Do you know how most lenders will respond to this type of macho posturing? Well first theyll stop being so understanding and then theyll reply go ahead and do it!

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Now bear in mind that most lenders (e.g. banks, building societies, insurance companies etc) are massive organisations, with vast amounts of money at their disposal. So as much as you might like to think that your business is vital to their continued survival, it isnt! Even if they received nothing from your bankruptcy, it would make less of an impact on their balance sheet than a fly hitting an express train head on.

So they double bluff you.

And then what do you do? Do you back down and look weak (in which case further negotiation will be.difficult, to say the least), or do you follow through with your threat and do something (i.e. file for your own bankruptcy) that you dont really want to?

Nasty!

You should avoid this at all costs. Dont even put yourself in that position!

As I said earlier, they dont want to start legal action, but they will if they have to! So dont even test them with this little bluff.

Credit Debt Consolidation

Bills and more bills, this is what you find all the time at the end of the month. There are several things that you need to pay for, rent, fees, loans, phone bills, electricity, water and many other things too. Most often you will find it difficult to pay off your bills monthly; if this is always the case with you then you should consider getting credit debt consolidation. The people who give out the credit debt consolidation are found majorly in banks or in independently owned businesses. There are also others who can be found online.

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Most of these people, who help you with the credit debt consolidation, are always experts and experienced people in this business. Therefore, you are sure that they will help you reduce your debts to whatever level they can. But what really do these people do? Most of the times we are often so busy or are not really experts in dealing with debts yet we are in debts. Hiring someone who will help you with your credit debt consolidation is to be able to have this individual help you to lessen or make easy your debt problems. This they can do by helping you to be able to maintain a more reasonable amount of debt at all times and not be loaded with debts from all corners that will lead you into serious problems of repaying them.

It is not difficult to find these people that will help you with your credit debt consolidation. These people are also very good to work with, since most of them will work and be paid according to how much they have helped you consolidate in terms of debts. This means that you will be paying them based on the results that you receive in regards to their work. This is good since you will be saving a lot even as your debts decrease each day.

To get the best results in regards to your debts going down or even clearing them for good,. It is good to find someone trust worthy to carry out your credit debt consolidation. Do a research about this person to find out if he or she is trust worthy, since you should remember you are dealing with your finances which are quite a sensitive issue. Also ensure that the individual is well experienced and an expert in credit debt consolidation. This way you will be sure that your debts will soon be an easy thing to handle or you will be in no debts at all.

Don’t Let Your Debts Spiral Out Of Control

Being severely in debt can be one of the most stressful situations we can find ourselves in within our everyday lives, and in recent years thousands upon thousands of us have begun to find our debts turning into a problem. Maybe your debts have simply got out of hand, with the repayments finally getting too large to handle comfortably, but a more common scenario is that a change in your financial circumstances or employment means that previously manageable debts are now no longer so easy to bear.

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If you’re in this situation, you’re probably all too familiar with the gnawing fear that sits in the back of your mind, stopping you from enjoying life as you should. The sound of the telephone ringing can spark the fear, in case it’s a creditor calling to ‘discuss’ your situation, and it’s common to stop opening mail because of an anxiety about what bad news it might bring.

When things get to this level, it’s tempting to bury your head in the sand and hope the problems will go away, but this is absolutely the worst decision you could make. However bad your situation may seem, it’s only by taking control back in some way that you can begin to solve your debt problems, even though this may seem an extremely daunting prospect. The alternative of being passive will only result in your debts spiraling out of control, with bankruptcy and all that entails being an almost inevitable result.

So what can you do to start the fight back? Firstly, you need to take a good look at your situation. In your anxiety about the state of your finances, it’s very possible to get things out of perspective. For example, a missed credit card payment may seem like a big deal to you, and the letters you’ll get off the credit card company may seem intimidating, but in the larger scheme of things it’s not all that serious. A quick call to your credit issuer may lead to a resolution of the problem.

In any case, you should always contact your creditors if you’re struggling to meet your commitments. Behind the corporate impersonal letters they send out, there is usually a human being keen to help you if possible. You may be able to restructure your debt, agree a new repayment plan, have penalty charges rescinded, or one of many other options to consider. Remember, the person you’re speaking to usually won’t have any vested interest in your debt, and will treat the matter with professional detachment.

If your debt issues are more serious, then there is the option of taking out a consolidation loan. Although taking out further credit when you’re already struggling with debt isn’t necessarily a good idea, if done with care it can clear up your problems almost at a stroke. If you choose this route, then be sure to speak to a reputable company who will not lend to you if they think it’s a bad idea for your financial future.

If consolidation isn’t an option, maybe because of poor credit or lack of collateral, then there are still options available. Make an appointment to see a debt advisor, either at a debt handling company or at a charity. They will help you explore what you can do to improve matters, from a formal debt management plan to something less official such as help with a letter explaining your problems to your creditors and asking for a little leeway.

Whatever route out of debt you decide to set off on, remember that it’s only by taking charge of the situation that you can start to improve things.