A lot of us are quite scared of communicating with creditors. That is probably because we have a strong sense of responsibility about our debt. We are ashamed to talk to them especially when we know that we had been late on our payments.
Defaulting on payments does not necessarily mean that you had been reckless with your spending. Sometimes, you are forced to use your debt payment fund for more important expenses like those for your health.
Being sick is a valid reason to be late on your debt but that does not exempt you from the late penalties and other charges associated with it. However, you can work on making things less destructive. This is an unexpected circumstance that nobody wanted - in the same way that some people do not want to miss payments because they got laid off from work.
So if you find yourself intentionally defaulting on payments because of your sickness, here are some of the things that you can do.
First of all, you need to call your creditors. Despite how you view them, creditors appreciate sincerity in their clients. Just pick up the phone or send them a letter to let them know that a sickness is causing you financial difficulties. This crisis is making you miss your payments. Explain the situation and express your sincere intent on paying back what you owe. Acknowledge that the crisis does not take away your responsibility for the debt but at the same time, let them know that you simply cannot afford your current debt payment requirements.
Do not be afraid to tell them the details of your illness. Be prepared to show a document from your physician to prove your claims - especially any future medical treatments that will indicate how long you have to pay medical expenses that you are currently financing.
Creditors usually have programs in place that will place you in a special payment plan that you can afford. Or, you can opt for a third party debt relief service life debt management or debt settlement. All of these are effective in getting you a lower payment plan so you can pay off both medical expenses and your current debts.
Create a budget for your finances so you know how much you can afford to keep paying your debts. Be honest with yourself and never promise to pay more than what you can really spend. Defaulting on the new payment plan may get the ire of your creditor so try not to disappoint them. Make sure they understand that your medical expenses will come in first.
When you have ironed out your plan for your debts, you want to keep from taking in more debt. In this particular case, you don’t want to accumulate medical debts. Research on charitable organizations and government programs that can help people with your specific medical condition. You can also approach local churches to see if they can provide you with financial or other forms of support to help you maximize your limited finances.
In case the creditors do not want to give you leniency, you may want to look for a debt relief company who can assist you in negotiating your debts. Your best option is to have your balance reduced so that you can get out of debt faster.
Defaulting on payments does not necessarily mean that you had been reckless with your spending. Sometimes, you are forced to use your debt payment fund for more important expenses like those for your health.
Being sick is a valid reason to be late on your debt but that does not exempt you from the late penalties and other charges associated with it. However, you can work on making things less destructive. This is an unexpected circumstance that nobody wanted - in the same way that some people do not want to miss payments because they got laid off from work.
So if you find yourself intentionally defaulting on payments because of your sickness, here are some of the things that you can do.
First of all, you need to call your creditors. Despite how you view them, creditors appreciate sincerity in their clients. Just pick up the phone or send them a letter to let them know that a sickness is causing you financial difficulties. This crisis is making you miss your payments. Explain the situation and express your sincere intent on paying back what you owe. Acknowledge that the crisis does not take away your responsibility for the debt but at the same time, let them know that you simply cannot afford your current debt payment requirements.
Do not be afraid to tell them the details of your illness. Be prepared to show a document from your physician to prove your claims - especially any future medical treatments that will indicate how long you have to pay medical expenses that you are currently financing.
Creditors usually have programs in place that will place you in a special payment plan that you can afford. Or, you can opt for a third party debt relief service life debt management or debt settlement. All of these are effective in getting you a lower payment plan so you can pay off both medical expenses and your current debts.
Create a budget for your finances so you know how much you can afford to keep paying your debts. Be honest with yourself and never promise to pay more than what you can really spend. Defaulting on the new payment plan may get the ire of your creditor so try not to disappoint them. Make sure they understand that your medical expenses will come in first.
When you have ironed out your plan for your debts, you want to keep from taking in more debt. In this particular case, you don’t want to accumulate medical debts. Research on charitable organizations and government programs that can help people with your specific medical condition. You can also approach local churches to see if they can provide you with financial or other forms of support to help you maximize your limited finances.
In case the creditors do not want to give you leniency, you may want to look for a debt relief company who can assist you in negotiating your debts. Your best option is to have your balance reduced so that you can get out of debt faster.
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