Three Ways To Avoid A Delinquency
Having a loan go into delinquent status can have serious consequences. At first you may just receive a few annoying phone calls from the lender, but if the issue is not quickly addressed it will not be long before the account is turned over to a collection agency for action. Once a loan is placed with a collector you can expect the number and frequency of collection calls to increase and should also expect to be served with a collections lawsuit. If you ignore a collections lawsuit the lender will take judgment against you and then move forward with efforts to collect what is due. Many common collection tactics include garnishing your wages or bank account, and repossessing your property. To avoid these things happening to you, take action now to keep your accounts paid up to date.
If you are unable to make payments on the debts you owe, as those payments become due, there are other options you can look at to avoid falling behind. Bankruptcy is one way to avoid collection efforts, but three ways to avoid a delinquent status all together include:
- Calling your lenders and asking for an extension of time to make a payment. This is most effective if you have not defaulted in the past and this is the first time you have asked to move your payment date.
- Negotiating a lump sum payment to settle the entire account. If you are able to obtain a lump sum of funds it can be to your benefit to pay it all to one lender if that lender will accept a lesser amount than the full balance due, but consider the entire debt paid in full.
- Consolidate higher interest rate payments into a plan that covers all your debt with one manageable payment.
These options will not work for every situation, but when they do a real lift can be felt from the financial burden of having too much debt. It does take some time and effort to get your finances in order, and we can help. Some creditors are more willing to work with an attorney than directly with the consumer, and using a skilled debt management attorney can also result in more favorable terms than you might be able to negotiate on your own. For help coming up with a plan that meets your needs, call our office.
For more information about how to avoid going into default on your financial obligations, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.