4 Tips on How to Handle Debt Repayments at that Crucial Time


Statistics show that 80%  of Americans are in debt, sadly, this does not apply to Americans alone. It also applies to you and me.


I have a load of debt that I have been carrying for a very long time. It all started accumulating slowly, and before I knew it, I owed people lots of cash including financial institutions.

With no income to cater for the repayments, it reached a point that I couldn’t sleep. It had become too much. At some point, it even broke my marriage. Thank God that we were able to reconcile-but am still in debts.

There are several mistakes I made long the way and I believe that you could be making the same mistakes-though innocently. It would have been easier to tackle them at the beginning and maybe I would have completed my repayments by now.

When taking a loan, or borrowing from friends and family, you are optimistic that things will turn out great and that you will be able to repay them back in the stipulated time. The deal is sealed and the cash is availed to you as per the agreement.

The day of repayment starts to draw near and that is when anxiety kicks in. You have not met your target, and unfortunately, there is now way out.
But all is not lost. The following tips will help you survive this moment:

1.       Pick your creditor’s calls.
This is a mistake I used to make and you could be making the same too. I could avoid the calls of my creditors. I had now words to tell them. I feared disappointing them-which I had already done anyway.
Pick their calls and if possible, meet them and talk to them in person. Be open and explain to them your situation. Avoiding their calls only makes things worse. They could come to your workplace or home and embarrass you.

2.       Communicate early
Talking to your creditors early enough before the deadline could help them prepare for other means or make arrangements on how they will be able to continue their operations. It will also give you ample time to focus on getting the money to make the repayments.

3.    Pay back the interest
Some lenders, especially shylock ones in Kenya, usually accept to be paid back the interest for a certain period as you wait to collect the principal. If you can, repay the interest and then agree on how the principal will be paid in small amounts and within the agreed time.
Pushing the repayments further or allowing interest to accumulate will only make it harder for you to pay back the debt.

4.  Work harder and smarter
If you depend on only one source of income, look for something extra to do to ensure you meet your demands. It’s not easy living from paycheck to paycheck-it’s even hard to get out of debt this way- but you can work on reducing your expenses, adjusting your lifestyle downwards till you are out of debt.

If you manage to repay back everything that you owe others, use the cash to invest or save. Do your best not to get into debt again, unless it’s for business purposes. Most importantly, make sure you keep your word and repay everything back.

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