Happy Tuesday everyone. I hope all is well. Today I will be having a guest post from Michelle Blackmore. Enjoy
Debt can be a rather pressing issue and if you’re one who’s carrying a huge debt burden upon yourself, then it’s but obvious that you should be worried about it. However, what you need to understand herein is the fact that debt is something that only gets worse with the passage of time, so it’d only be fitting if you took care of your debt and that too as soon as possible. The moment you manage to get rid of your debt, things are bound to look up and your finances should be able to bounce back on track.
5 Crucial tips to settle your debt
Settling your debt happens to be one of the most effective solutions for your debt woes and going ahead with this is the right decision honestly. The following 5 tips could help settle your debts effectively enough:
Always offer less
You see the debt collectors are known to offer plans with the help of which you can literally pay off all your debts and hence close your accounts. This plan necessitates that you make a fixed payment towards debt payoff every month. Understand this for a fact that a debt collector would be deciding upon how much you’ve got to pay based on how much you can actually afford to. This is why it’s advisable that when you’re negotiating your debt with a debt collector always figure out how much you’d be able to pay beforehand. Once you’ve done so, offer to pay even lesser to the collector.
Make use of what you have
Whenever you’re making payments on a debt settlement plan, don’t make the mistake of paying with the money you haven’t got. Offering post-dated checks or agreeing to automatic deductions isn’t really the wise way out. If you by chance do so and then you haven’t got enough money in that account for making payments, then it could even get worse for your bank might then slap you with other penalties including insufficient funds fees. This is why you should always plan out payments depending on your actual financial strength.
Always maintain records
It’s extremely essential that you keep records of all the bills and letters that come your way from the debt collection company. You should also keep a proper record of all their phone calls. This is inclusive of the date, time, the name of the collector as well as everything he said. Documenting everything is rather important for this can actually act as proof of deals that you’ve made with debt collectors.
Do wait for month end
Another fact you should keep in mind is to wait for the month end. Actually, most debt collectors are known to work off their commission on a monthly basis. Hence, if you negotiate at the end of the month, then with the collectors being more anxious towards pulling off their deals will definitely move on toward the monthly quota. This can actually land you a very good deal.
Don’t give out private information
Another tip you should keep in mind is not to give out any private information when talking to a debt collector.
Keep in mind the 5 tips described above and move forward with debt settlement.
Michelle Blackmore is a financial writer who has insightful knowledge on the contemporary financial issues and the economic state that the nation is going through.Presently she writes financial articles for different websites, communities and blogs.