Sign a contract with a collection agency. It should specify the amount of debt and a new payment schedule. Start paying off the debt and try to avoid late payments.
Before you negotiate with a creditor, you need to understand what options are available. The collector may agree to:
Change the payment date. For example, move it from the beginning of the month to the end.
Change the frequency of payments - for example, allow payments to be made once every three months.
Provide credit holidays - a period of time when you may not repay the debt. During credit holidays, interest may not be charged.
Reduce the interest rate. If the borrower is willing to negotiate and provides supporting documents, the creditor's loyalty increases. He may agree to a lower percentage than was under the original agreement with the bank.
Reduce the payment amount by increasing the loan term (restructuring).
Reduce the amount of debt. If the collector understands that the cambodia mobile database debt is too large and the debtor's income is too small, he may take this measure.
There must be grounds for each of the listed concessions. If the debtor has a high income, and the collector can prove it in court, you can only count on some concessions. The most common terms of the agreement are restructuring and credit holidays. It is quite difficult to lower the rate and reduce the amount of debt. You need to be able to negotiate and really have grounds for such concessions.
How to avoid becoming a defaulter
It is easier to negotiate with a bank than with a collector. If you have financial difficulties and cannot make payments, contact the bank and inform them of the situation. They can also offer credit holidays, restructuring, rate changes and other conditions.
An agreement with a bank does not have as negative an impact on your credit history as your debtor status. In the future, you will be able to count on approval of credit applications and favorable credit terms.