How to Buy Yourself Time When You Can’t Pay

Consumers are strongly advised to be conscious about their payment due dates and submit payments on time all times. Nonetheless, there are instances when you may be confronted with financial crisis or unfortunate events (job loss, illness, divorce, etc) which can make timely payment impossible. In this article, let’s discuss positive actions you can do to buy yourself some time while you finding a long-term solution to your debt problem.

buy timeSit and analyze your situation.

Some people can make wrong decisions because of panic or anxiety. But before making a drastic move, it’s best that you first sit down and take a closer look at the problem at hand. First, it’s very important to understand the status of each of your accounts. How much do you really owe each creditor?

Furthermore, you may be able to put off payment on some of your accounts while putting off payment on others, such as your mortgage can instantly worsen your situation. Take note that some mortgage lenders do not wait for the second or third month. Some lenders can start foreclosure proceedings on the first month of delinquency so you need to be on guard.

Check your credit report.

Order a copy of your credit report to make sure that all charges in your accounts are correct. Keep in mind that in most cases, erroneous reporting or false charges can add up to your debts. Sometimes, charges from other people’s credit file may also get mixed up in your report. If you find any inaccuracy, send a dispute letter to the bureau that issued your report so that the matter can be corrected right away. You should also call the creditor involved to let them know about the errors in your account.

Speak with your creditors.

At the first sign of trouble, speak with your creditors, especially your mortgage lender and let them know that you need help to catch up with your payments. For instance, you may able to lower your rate, waive penalty fees or extend your due date if you notify your creditor before you miss your payment. You may even be able to request your creditor not to report your late payment to protect your credit score.

TIPS: Negotiate These Expenses and Save Your Budget

If you think you will need a few months to get back on track financially, you may even arrange for reinstate or loan modification. Most creditors will adjust their terms and consider a customer’s request especially if you have a valid reason for not paying on time, if you have a good payment history and has been a long time client of the company.

Plan your repayment.

When things get tough, you need to come up with your own financial plan that suits your current situation. Find ways to cut down your personal expenses. Use every cent you can save to contribute to your debt repayment.

If you have credit cards, this is not the best time to incur new charges. Instead, do your best to zero-in all your balances to avoid interest rates, late fees and other credit card charges. You may also consider applying for a balance transfer credit card with zero interest rate so you can pay your bills without additional APR charges.

GOOD READ: What You Should Do When Debt Overwhelms You

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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