The SavingsPinay Series | Ayoko sa Utang! 5 Days To Be Debt-Free For Life is created and published first in this blog. Visit this LINK for the past SavingsPinay Series.
PS. Sorry Day 2-5 is one week delayed. Hope you will still learn and enjoy.
Day 4 | Tamang Pagka-usap sa Pinagkaka-utangan
Of course we would all want to pay our debts on time. Sino ba namang may ayaw nun? However due to unwanted circumstance, like our source of income might drop, an unexpected life event happen or there is a sudden change in the current cash flow, that cause to start of a downfall in our financial life. We can't pay the bills on time and we fall short of amount to pay for people/company we owe.
I understand how some will choose temporary solution of just ignoring the phone calls, snail mail and frequent visits ng pinagkakautangan natin. But remember that you have the responsibilities as a person who has borrowed money.
Today I will be sharing how to communicate with your creditors. What to say and what to do as you talk to your creditors can make a huge difference in the already stressful event.
Where to Begin
As a series I encourage you to follow the step by step procedure that started from Day 1.
Talk to Your Creditors
Before you even talk to your creditors and make some agreements on how you could repay, you as debtor should have a concrete plan already. You have already assessed how much monthly income you can allocate, how much you owe and how you plan to pay your debts.
Contacting Your Creditors
Now you have to take note that how you pay before the situation worsened can affect the judgment of your creditors. If you are a good payer then this means your creditor will be much nicer. At the end of the day, creditors see you as a client. They wouldn't want to lose you so they will be much nicer to communicate with you.
The important thing is wag mong takbuhan ang utang.
Contact your creditors and explain the situation. You can ask their assistance to work out/come up with a solution.
Always prepare to tell/broadcast the reason you cannot pay on time, your current income, your other debt/bills ti pay and how much you are able to pay per month (or per week) just to keep up with your debt.
Make a personal appearance at your creditor's home or the bank branch of the credit card you've maxed out. Treat it is a visit to you dentist or let's say physician. Be very humble and talk sincerely.
If you can't possible visit your creditor then try a phone call. Make sure to write down the name of the person you've spoken to and his/her position so to make it transparent. Letters will also be good as long as written beautifully. You can research on the web for some outlines and templates available.
What to Say to Your Creditors?
Not everyone is good in communicating more so negotiating. The key is to come up with an agreement. A mutual understanding between you and your creditor. It should be something acceptable and confirmed with a written payment rate/schedule.
If the communication went well your creditor might give you a pay only interest on the loan until you can resume making monthly payments, reduce the monthly payment and even drop the late charges.
Creditors may not be that willing to offer some payment alternatives but I'm sure mas magugustuhan nilang mabayaran paunti-unti kasiya hinde.
Make sure not to break the agreement anymore. Below are the tips I can share about negotiating.
1. Tell Your Story
Your creditor will surely want to know what happened to you and the reason/s you can't pay your debt on time. Be consistent and honest enough on your story. Do not add or omit in the details.
Be sincere as you tell you story but please avoid becoming too dramatic. Your goal is to negotiate and let the creditor understand the situation. You don't want him/her to be confused.
3. Have a Written Agreement
Put everything down on a paper and let both parties sign as a sign of perfect agreement. You don't want to be changed and soon have your words against theirs.
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