05 Mar Dealing with Creditors
Every now and then, life just doesn’t go to plan due to illness, unemployment or an unexpected issue needing your attention and you might not be able to make a payment to a creditor. Once you have skipped a payment, it doesn’t take long before reminders are sent, and if the situation hasn’t been foxed, these reminders can quickly become debt collection letters and threats of legal action.
What are your rights?
Whilst they are allowed to contact you to request payment and pursue avenues to recover the money, Creditors are NOT allowed to call you at all hours of the day or night. Nor are they allowed to call your place of employment to confirm your employment status.
Here are a few quick tips to how you can avoid nasty creditor calls:
- Work out what you can afford to pay
- Call your creditors, advise them of the situation and request more time to pay
- Confirm the request in a letter or email to your creditors
- Keep the lines of communication open, and if things change let the creditors know
- Find alternative income sources like getting a second job
- Stick to a strict budget until your situation improves
- If things are really serious, talk to your creditors about Financial Hardship options
Alternative debt solutions
Alternatively, you may think about a Debt consolidation strategy. “Debt consolidation” means refinancing your debt onto the lowest interest rate possible – and setting up a realistic repayment plan to get it paid off! Of course, any debt consolidation strategies can only be successful if you cancel or cut up your credit cards and avoid running up any further debt. If you can commit to that, debt consolidation can potentially save you a lot of money.
There are a few ways that you can do this:
- Consolidate your credit card debts into one personal loan
- Transfer your debt onto a card offering low balance transfer
- Incorporate the debts into your mortgage.
If your situation has negatively impacted your credit rating, you may find that you are not eligible for a loan to consolidate, can’t transfer to a new credit card or even re-mortgage. You may find yourself in a real struggle with debt collectors chasing you and it seems like you might have to go bankrupt.
How we can help
There are alternatives even if your situation is serious. Talk to us about the Financial Hardship obligations of your creditors, Moratoriums and restructured payment amounts and at Active Debt Specialists, we are experts at implementing the Debt Agreement* repayment option, which has no interest, stops debt collectors and your repayment is only what you can afford.
Find the right solution to help solve your credit card debt issues.
Give us a call today on 1800 085 550 for a free no- obligation confidential chat.
* Debt Agreements will affect your credit rating and conditions apply. Find out first.