Contact the creditor
Do not wait for the pile of debt repayments to grow to large sizes, prompts will start to occupy your e-mail and SMS inbox, and the creditor’s representative will call you every few days, reminding you to pay the debt. Postponing the time you need to pay or hoping that it will eventually somehow disappear is the worst possible solution. You must face the problem. Contact the creditor by phone or in person and present your situation to him. Do not think during the conversation, do not put conditions and do not be guided by emotions. Both sensitive words and full of profanity statements will be negatively received and will hinder or even close the way to an amicable settlement. Concrete matters, but you don’t have to go into the details of your temporary financial problems that prevent you from paying. If you do not feel up to making a phone call, because you are, for example, a very emotional person, send a letter to the creditor (email, etc.) and describe your situation in it.
Suggestions for resolving claims
When contacting the creditor, you must have specific solutions to the uncomfortable situation. Therefore, carefully analyze your budget beforehand and try to find areas where you could save money and spend it on repayment of a non-bank loan or bank loan installment. Debt recovery options are several. If you are not able to pay the full amount immediately, negotiate to spread it over several convenient installments. In the case of a loan or installment loan, suggest extending the repayment period – this will lower the level of installments. You can seek partial or total cancellation of penalty interest. Begin negotiations with the lowest amount possible to meet the other party’s proposal at some point.
Settlement – the best solution
The most important goal of the negotiations is to work out a compromise that will satisfy both sides, i.e. you will get rid of the debt and the creditor will recover his money. Nobody says conversations will be easy. However, remember that the settlement does not end there. If you managed to agree with the creditor and set up convenient repayment terms, then do it. Otherwise, you will destroy the hard-won agreement and the subsequent negotiations will end in failure for you, because the other party will find you verbal. Even if, at some point, contrary to the arrangements, you are able to pay only PLN 50 or 100 per month, transfer these funds to the creditor’s account, and then strive for quick compensation of arrears. This will indicate that you have good intentions.