What Creditors Expect After a Debt Settlement Negotiation
The process of negotiating with creditors takes a lot of your time, energy, and patience. While it is important that you understand the process of getting into and eventually settling your debt negotiation, it is equally important that you understand what happens after that agreement is reached. Settling your debt with a financial lender is an official agreement that both parties are meant to uphold, so by understanding what creditors fully expect, you can be well prepared for what is to come after the conversation is over and the payments are due.
Make the Agreed Upon Payments
Upon reaching an agreement with your creditors, you will either pay off your settled debt in a lump sum up front or will agree to monthly payments for a specific amount of time. The decision on how you’ll make payments is based upon your current income, history with the lender, and budget. As such, the creditor you are working with will fully expect that you are able to fulfill your financial obligation.
It is important to remember that debt negotiation ends in legal contracts. As soon as you agree to how you will settle your debt, you are obligated to uphold your end of the bargain. If you signed up for monthly payments, failing to make them on time or missing a payment altogether can give your creditor permission to break the remainder of the contract. When this happens, you could rack up on additional fees and other repercussions that could cause more harm to your financial future.
Do Not Continue Using the Credit Line
If you are dealing with credit card debt, one of the worst things you can do during the payment process is to continue using the card. Most of the time, there will be regulations about this particular subject within the contract, but even if there is not, continuing to use the line of credit could cause major problems. In many cases, the credit card cannot be used because it is closed by the grantor due to lack of payment within 30-90 days or voluntarily closed by the borrower before the debt settlement arrangement was made. If you were forced to fall delinquent on your minimum monthly payments due to a valid hardship, it is very common that you will not have the option to continue using the credit line. Usually, debt settlement is agreed upon because you have made the case that you can not afford to pay back the amount you have already borrowed. By continuing to rack up money, you are essentially invalidating your argument, while also racking up additional debt that you are struggling to pay off.
Maintain Communication with Your Creditor
One of the key things to remember when negotiating with creditors is that, just like with any successful relationship, communication is key. During the debt negotiation process, your creditor wants to make sure that they will receive their money back and they truly will help you in any way they can to make sure that you both are successful during the process.
Any time you are having issues financially, the best course of action to take is to ask for assistance. By simply maintaining an open line of communication with the company you have an agreement with, you can work on battling your debt in a healthy and productive way that benefits your situation.
Creditors Expect to Trust You
When all is said and done after you finish your debt negotiation, the biggest expectation is that you establish a line of honesty and trust. The moment you chose to open a credit card or take out some kind of loan from the creditor, you assured them that you would pay them back and build your relationship from there. While we have outlined the general expectations of creditors after a debt settlement negotiation, the best way to truly know what your creditor wants is to set up a time for you or your debt settlement consultant to speak with them directly.
Contact Liberty Debt Relief to find out more about the debt settlement process and how it can help improve your financial future today.
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