Often seen in the real estate context, debt forgiveness is the elimination of all or part of a legal debt obligation. A long-term repayment plan typically lets you pay back your debt with reduced or no interest. Although interest will often continue to accrue during this time, a forbearance agreement will enable you to temporarily retain some cash without the chaos associated with default. Among the options are two types of repayment plans: forbearance agreements and long-term repayment plans.įorbearance agreements create a set period of time in which you do not have to make payments. If you’re temporarily unable to make even your minimum payments, you may have alternatives to a loan default, which can create a blemish on your credit reports that lingers for years. If you have an established track record of making on-time payments, you have a good chance of success. In many cases, securing a lower rate is as simple as contacting the card issuer and asking for it. Arranging for a reduced interest rate is one of the most common requests consumers make to credit card issuers. If you’re falling behind and unable to make your minimum monthly payment on your credit card or other debts but you’ve been a reliable borrower in the past, contact your lender to see if they would consider reducing your interest rate or finding another way to make your loan more manageable. Especially during the Coronavirus/Covid-19 pandemic, lenders may be more willing to make accommodations for you as long as you contact them to strike an agreement. Contrary to conventional wisdom, lenders are often willing to negotiate with customers who want to lower their interest rates, develop payment plans or pursue other arrangements to better manage their debt.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |