All the experts keep singing the same thing:
'Tough times ahead are coming,
The petrol price will sore,
The credit crunch is coming,
The number of jobs created does not make any difference,
The Reserve Bank will fail to save us...'
I have yet to see good news for the country...
Would you like your life to be controlled by the negative predictions coming from those experts?
I won't let that happen in my life, so should you.
This article will focus on two terms: 'Control' and 'honesty'.
When being in debt, many people make the mistake of changing cellphone numbers, refusing to answer to phone calls with private numbers, they change bank details in order to avoid their account to be debited and so forth...
You might call it 'desperate measure', but I call that 'dishonesty'.
There is nothing more frustrating for a creditor than a 'borrower who hides away from paying what's due'.
It is extremely dishonest to borrow something and failing to repay what's due, especially when the creditor trusted and helped you. Remember, that when you borrowed, you were in need.
Practicing dishonest methods such as 'phone number change', 'not answering phone calls', etc...accentuates your troubles. When such things happen, you are forcing your creditor to believe that there is no way that they will take their money back from you.
How would you feel, if someone you lent money to, refuses to pay you back?
It would feel bad and you would probably call on 'law enforcement' for help. And this is exactly what creditors do. But here is the problem:
'Law enforcement (sheriff, court and the police) does not come cheap. Every time they need law enforcement against you, they have to pay for legal fees. Unfortunately, there are laws stipulating that the dishonest borrower is liable for all legal fees charged to the lender. In other words, whenever you receive a letter from a paralegal (attorney) company, you pay for it. When a paralegal company calls you, you pay for that air time. As a result, your original debt accrues. It will include both your original debt and the extra legal cost used to pay the lender's lawyer. It is legal.
The Bible says:' the wicked borrows and does not pay back, while the righteous give.' (Psalms 37:21)
If you deliberately refuse to pay back, the Bible is not on your side and calls you a 'wicked'.
Jesus said: ' When you are on the way to court with your adversary, settle matters quickly. Otherwise, your adversary may hand you over to the Judge, who will hand you over to an officer and you will be thrown in prison.' (Matthew 5:25)
If you are on a rocky road, answer the phone or call your credit provider in full honesty, and settle an agreement. It will save you from being handed over to a sheriff, a lawyer or a judge. Be honest about your situation. If you are not working, tell them the truth. There are legal provisions protecting jobless people. Your creditors will give you a break until you have a job. If for some reasons, you can not afford to repay your installments, be honest and tell them when and how much you can afford to repay.
As long as you don't disappear, and you make yourself visible, you are saving yourself from a lot of troubles.
Then comes the term 'control'. Many people can barely see their entire salary, simply because they fail to have a 'say' on how much they will repay.
Let's take an example:
'Jenny earns 12000 Rands every month. But after debit order repayment, she only gets left with 2000 rands.
Needless to say, that she is very sad...But there is a solution to this issue: 'Control' or having a say on how she can repay what she owes.
In our example, this is what Jenny's debit orders look like:
- Personal loan: 3000 Rands
-Car repayment(including insurance and security tracking): 4000
-Other stores accounts and credit cards: 3000
If Jenny wishes to enjoy her money, she will need to regain control. Her situation feels like being totally out of space where she is powerless and where it seems as if external hands have taken over her life. She needs to call her creditors and tell them:
-That she will skip some payments.( to be paid at a later agreed date)
-How much she can afford to repay (rediscuss terms)
-While she skips payments, she can focus on closing down smaller accounts.
The reason why many refuse to use that tactic, is simply because they feel threatened by the idea of having a low credit score. They rather protect their credit score than sparing real cash and having food on the table. They are too attached to those little numbers called credit scores.
Do you remember my previous post about being too attached to things to the point where you sink into silly debts?
Regardless of what you decide on, if you are in deep debts, you credit score is probably ruined or it will be ruined soon. So there is no point at protecting it. The sole reason to have a positive credit score, is to borrow more. Who needs to borrow more when he/she is already in deep debt?
Let's think people!
Let's recapitulate the two main points of today:
1. Be honest: 'don't run away from your creditor, tell them the truth and always call them before they call you.
2. Take control:' take advantage of the credit protection regulations, and get into a settlement explaining how and when you will repay. Make sure that your budget covers enough for your basic needs through real cash.'
Thanks for reading, my line is open for Questions, send them to me and we will discuss them together, privacy guaranteed.
If you know someone who might need this, please forward me their emails, I will be glad to help.
God Bless.