Whenever the day of repaying bills approaches, people start to panic. This panic is not because of fines, but of the narcissistic bill collectors who start showing up at the door to harass you, until you have paid your dues. It is hard to keep up with such people, especially when you privacy is breached and your self-esteem is gone for a toss. There are tactful ways to deal with such people without raising much ruckus and managing to keep yourself sane.
Avoid debt collection altogether
The first and basic advice is to avoid letting your accounts fall in the hands of a third-party debt collector. You should do a detailed study of the amount you want to borrow, as well as areas where you can have the amount slashed out. Then you should go for a credible lender who has got a clean record from a government agency. This will reduce the risk of being harassed inappropriately in the future. Also while sealing a deal, try to prefer those lenders who will not sell your accounts to third-parties. Be to the point and very frank, as it will be the only time you will have your say. Once the deal is inked and the money is in your hands, the lender has the upper hand over you.
Most importantly, prefer government-sponsored lending over private-sponsored, as it will at least bind your lender and you to the law which may reduce chances of malpractices considerably.
Educate yourself about your rights
Debt-collectors usually take advantage of the ignorance of the victim towards his or her rights. This enables them to harass without fear of law. So, in order to keep the loan-sharks under check, you should be well aware of your constitutional rights. Many countries provide safeguards against debt collectors, which you should exploit. If your country is not providing such provisions, make sure to know every detail of the law prevalent in the area, so that you will not be harassed beyond a limit. Usually, in most of the countries, harassment and threatening is illegal that can lead to jail-sentence. So, even though studying constitutional rights and laws is boring and tedious, you should be aware of that before inking any deal.
Keep copies and records
Once you have taken a loan – let it be study loan or personal loan – keep a detailed record about the expenses from that loan and the payments you have made. Make sure that the lender gives you the correct documents regarding the loan-payment. There have been cases when the borrower found loan-sharks at his/her door years after he had cleared the debt. These records will act as a proof and will save you from undue harassment. Moreover, it will help you get an upper hand while dealing with them in a court. So, even after your debts are cleared, keep the records safe with you.
Safeguard bank accounts
When a person fails to pay a debt, the first thing that faces the brunt is his/her accounts. The debt collectors file a suit for non-payment of debts, which, if you fail to defend against, leads to freezing of your bank assets, cutting you off your lifetime’s earnings. Such an act is legal and has the backing of the court, which puts you in a more haphazard situation. This will not not only increase the pressure, but also break you down in certain cases. So, in order to avoid such situations, make sure that all your bank accounts are properly secured. As there are some accounts, such as Social Security, life insurance and public sector investments, that cannot be freezed by the courts, you can go for such options. This will not only ensure flow of money if any untoward incident happens, but will also help reducing stress that you may otherwise face.
Go for debt management
The best way to avoid recurring debts is to manage them. If you are not good at management, go in for the services of a debt management company. The company will lay out detailed plans regarding the debt, including education-expenses, family-expenses and the like, and will help you cut down expenditures from every side, while saving enough money to see you through your debt. The company will also help you deal with the moneylenders in a proper and professional manner, which, in turn, will help you see off the chances of facing a harassing debt collector. Such companies are experienced in such a field, and will provide tactful advice and ways to help you enjoy your debt-period like a debt-free period.
