We know that it is easy to get into debt these days, but so that this situation is not an impediment to enjoy the holidays of the last months of the year, we warn you by explaining the problems that occur when you stop paying your debt.
If you ask yourself: what is the best strategy to pay your debts? In this article we break them down one by one.
Juan is a government employee. He decided to have several credit cards, as he had the financial capacity to pay the amount of each of them on a monthly basis. So at first he started with one, then another, until he had five cards!
Juan decided to make several purchases by the end of the year with the cards he had, however, his debt grew. Now, John can’t make the payments as he normally would, because he was embezzled as his debt increased.
John’s payments barely cover the minimum amount, and creditors call his house to ask him to make the full payment of what is asked of him each month, but John can’t admit that he’s had a problem with his debts and now doesn’t know what to do to pay them off.
If John’s case became familiar to you, let us tell you that you are not the only one who has gone through this debt situation. We know very well that in many places you have asked for advice to get out of that situation, perhaps with acquaintances, relatives, but none of them gives you advice that can help you resolve your situation responsibly.
For this reason we decided to give you a series of tools to face your debts, but above all to liquidate them.
Juan’s case is a situation that occurs with many public sector workers, although let us recommend that leaving the situation as it is is is not responsible, because the consequences are great.
These are some of the inevitable problems you will have to face if you don’t pay for them.
Calls from collection offices
Anyone who has had a problem with debt management will know that collection calls are a very difficult issue for debtors to deal with.
Sometimes acquaintances or family members persuade you to ignore them. However, we know that the job of collection firms is to recover the full amount of debt you acquired with banks.
So, it will probably be difficult for these firms to stop making calls just because you don’t answer them. Besides, it is not a responsible solution to deal with your debt problem.
Let’s review, for a moment, the way in which collection offices act after the delay of payments as the months go by and they do not receive a clear answer.
During the first 30 days
At first, collection executives start by making a friendly and cordial call. In it, they kindly invite you to pay the amount suggested on the receipt.
In addition, they hear the reasons why you could not make your payment on the date indicated. Then they remind you that it is very important that you make each one of the payments in a responsible way, respecting the suggested amount, since it is so that you can pay off your debt more quickly, and finally, they tell you when the payment deadlines are.
So that it does not negatively affect your credit history.
After 60 days
After the first 60 days after the first call, executives stop making cordial calls.
The first thing they do is they start calling all the contact numbers you left, because they want you to talk to them to see when you should make the immediate payments, because as in all acquired debt, interest increases after the late payment.
Afterwards, the executives will not only call you personally, but also your acquaintances and relatives. In this part, the collection offices begin to make the calls more and more complicated, because they make sure that your family knows that you have a debt with them and that you have not made the amounts in the suggested payments.
In addition to providing this type of information, they add that you do not answer their calls, so the executives contact your family.
This phase is uncomfortable because you are the one who has the debt, not your relatives.
When you reach 90 days
When the 90 days pass, the situation becomes more complex than it seemed at first. Forget that collection executives are kind to you, your acquaintances or family members, or anything that comes into contact with you.
The calls intensify, and not only do they make each due date, as was customary before, but they begin to be every day of the week. Contact schedules will no longer be respected, as they were stipulated at the beginning, they will be in complicated schedules.
In the majority of the occasions the offices of collection make calls to early hours of the day. So forget about getting up late on weekends! Because dispatches will sometimes start at 7 am.
But that’s not all, even with your family and acquaintances they will apply the same pressure strategies to make sure you pay off the debt as soon as possible.
When 120 days pass
120 days after the first call, the situation is completely different because your debt will be sold to other collection agencies, which will now be your creditors.
The problem with these collection offices is that, when they assume your debt, what they will want to get is that you pay, not only the amount you had in the beginning, but all the accumulated during the days you let pass.
On many occasions their language is offensive, they also make threats to pay off your debt. But, they will not only be rude to you, but also to your family, your acquaintances, because this type of office is in charge of exerting pressure and in this way you pay.
We both agree that this type of situation can be avoided from the first call. There is no need to go through this type of financial harassment and therefore we recommend that you advise you not only financially, but legally, as their impact on the legal environment are greater.
Also, for these end of year dates, such calls are not pleasant at all.
It affects your credit history
It is important to pay off your debts in time and form, for the simple reason that in your credit history this type of behavior is punished with up to 6 years, in the best of cases.
This type of behavior is sanctioned by being bullied in the credit bureau. That means, you won’t be able to acquire credits of any kind until after 6 years. Now, it’s important to clarify that the 6 years only apply to one debt; if you have more than one, imagine how long you have to wait to have a good credit history again!
This type of situation can represent a serious problem, since, in many occasions, we have economic hardships, but since we are bulletinados we cannot accede to a safe, fast and reliable loan.
Orilandonos to a new debt with particular lenders who handle high interest rates, so it is not a reliable option and help you get out of these situations.
The fact of not being able to exercise a credit because of our bad performance in this area, distances us from the possibilities of paying off through a loan.
If you don’t take responsibility for what you owe, it will be more difficult to do it later. Leaving it for later is one of the worst decisions you can make for this type of situation, because your debt will increase, along with interest.
The issue of interest on debts to everyone conflicts with us, because on many occasions we pay, in small amounts what the bank asks you, however, when you ask for the report on the progress of our debt we see that we do not pay anything, because all you have paid has been only for the settlement of interest, not the capital debt.
Not to mention that your capital debt also increases, being a huge snowball that continues to accumulate while you stop spending more time.