Debt collectors always strike fear in the minds of many debtors. The main reason that debtors fear debt collectors is that they resort to unscrupulous debt recovery techniques. We sometimes fall behind on payments due to unforeseen circumstances and we try our best to resolve such matter with the creditors. Unfortunately, sometimes our pleas fall on deaf ears and creditors end trying to recover the debt through debt collectors. Debt collectors are known to routinely break laws governing their industry and might end confiscating items worth more than the debt. Their crude debt collection tactics leave the debtor both emotionally and financially traumatized. How should we deal with debt collection, debt collection harassment and property seizure when debt collectors come knocking? Here is how you should go about it.
Don’t over explain yourself
Debt collectors usually love nagging the debtors. Coercion is their main technique in recovering debts and end up mentally torturing debtors. The problem is that coercion sometimes gets into our nerves and we end up pleading with them to give us more time. Collectors aren’t interested in listening to your pleas, to them these are all just lies. You should explain your financial predicament with the bank manager or a creditor directly to shed more light into your predicament . Debt collectors are used as a last resort in recovering the debt and that’s why your pleas fall on deaf ears. Begging makes the debt collector think that you are desperate, and they will continue pestering you. Stay calm and respond professionally, this will make your explanations sound professional.
Show commitment to repaying the debt
Sometimes we face tough financial situations which cause us to default on payments. To show that we are still trying to pay the loan, we can opt to pay in bits before the deadline or in bulk. But where does one get the extra money to pay the loan? You can opt to sell some your assets so as to get some money to pay back the debt. Interests on loans increase as we take longer to pay. Lifestyle choices also affect our loan repayment capabilities. We can cut back on our lifestyle and use the extra cash in repaying debts. Debt collectors will note that you are trying to repay the loan and reduce the amount of pressure. Some of your assets might be bleeding out your money and by disposing them of will help you get in track with your payments.
Hire independent property valuators or a consultancy firm
Debt collectors try and undervalue your property compared to the current market prices. Using the services of independent property valuators will help you in calculating the correct property value in Singapore. If the debt collectors decide to undervalue your property, you can take the necessary legal measures. The laws protects you from exploitation and we should use all avenues to protect ourselves from such vices. Consultancy firms offer these services and can help you in getting the best bargain. The debt collector will be forced to deal with the consultancy as opposed to harassing you. You will be less stressed as you don’t have to explain yourself to the debt collector.
Understand the Fair Trading Act
The Fair Trading Act protects you the consumers from unfair practices and give you additional rights when they do not follow the contract. Singapore relentlessly advocates for fair consumer treatment. By understanding this act, one can be well prepared in dealing with any form of extortion and harassment from the debt collectors. Go through your contract and understand how it improve your situation. Consumers are protected by the law from unfair treatment, as a debtor the bank or any other financial institution should analyze your predicament and contribute to solving the problem amicably. Hiring a lawyer is also advisable when it comes to understanding and interpreting the contract. By understanding your constitutional rights, you can handle debt collectors better. If debt collectors are routinely violating the law you can sue them. This will help in winning the overall debt case.
Refinance the debt
Refinancing the debt is the replacement of the current debt obligations with newer terms. You can approach your creditor and agree on newer terms on settling the loan in a more comfortable way. Refinancing the debt is seen as debt restructuring, the creditor will asses your current financial situation and come up with better terms. When going through a tough financial phase it is advisable to agree on newer repayment terms, this helps you focus on your other goals. Debt collectors too can agree on this rather than taking your property away. Sometimes we might opt in taking other loans to pay the current debts. This helps ease the financial stress we are going through.
Refinancing helps has the following advantages:
– Consolidation of loans into one
All your debts are brought together, which is convenient and keeps debt collectors away.
– Better interest rates
You get better monthly rates which makes loan repayment easier. The stress brought by debt collectors will be non-existent.
– Free up extra cash
By agreeing newer terms, one can now free up some money making their lifestyle lesser constrained. The extra cash can be used to settle some other smaller loans or improve day to day spending.
– Reduce risk
Refinancing reduces the risk of defaulting on a debt which results into the use of debt collectors. We reduce the risk of having our property seized. The longer repayment terms helps in creating more comfortable payment terms.
Write to the debt collector telling them to reduce the number of times they contact you
You can write to the debt collector telling them to reduce the number of times they are contacting you. If you are keeping up with the payments, then you can tell them to stop harassing you. Debt collectors pester the debtors and this can increase stress levels. To reduce the number of phone calls the debt collectors keep on making, you can contact them and ask them to reduce these remainders. One might ignore their phone calls if they are bothering you. The alerts you get via email or mail are enough. You can reassure them that you are going to keep up with the payments. Avoid rejecting court summons as they might result to fines or even imprisonment.