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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