How to Face Arrears in Debts?
USA - May 25, 2018
Most people, deliberately or not, decide not to pay their debts but hiding from their creditor, that only worsens the situation of the debtor. Banks today are more open to talk to reach a solution that helps their customers.
Debts if you deal with them in the routine manner usually help us achieve a short or long term goal. However, abusing them can also become a difficult spiral to get out.
Nowadays, it is extremely damaging not to pay the obligations because not only the doors of the financial system are closed to the defaulter but many companies have a policy to review the credit record of the people who apply for a job and this may be a cause not to be hired.
Usually, people do not stop paying their debts in a premeditated way, but if they do so, they do it in most cases because they face an unforeseen event that reduces their income, such as the loss of a job or the illness of a family member.
Sometimes the debtors are disordered and assume more credits than they are able to pay.
There are very few cases in which people deliberately take out a loan with no intention of paying the bank, explains Ana Vera, CEO of the collection company Kobsa.
Note, this is important, that a debtor facing arrears should not be scared. "Having debts is part of a person's business cycle and default is a circumstance that can happen even to the best payer," she says.
The important thing is to face those debts and not "hide", emphasizes the executive.
Today, financial institutions are increasingly open to solving the financial problems their clients face.
You have to go talk to the financial institution and propose a payment proposal, says Vera.
In the event that at that time you can not make any payment, tell the entity how soon they will reactivate their payments, she adds.
With this, a program of refinancing or fractionation of the debt can be negotiated, she points out.
Secondly, you have to avoid having many banking products one or maximum two.
How to do it?
It is not about not having debts, but about getting into debt intelligently and orderly.
Vera advises that the best for a person is to work with up to two financial entities and have as maximum of three financial products, such as a credit card, a vehicle loan and a mortgage.
In the case of a legal person (company) can work with three entities, she said.
"The most important thing is to proceed to have liquid cash flows with orderly budgets where we have clear objectives of what we should reduce in expenses and what medium and short term objective we want to have in asset acquisition, investment in training or what one considers as life project ", she noted.