Is the dialogue with the creditor able to undo the enforcement proceedings if we reached a compromise and voluntary debt repayment?
Should the settlement with the creditor be made in writing or is it enough to arrange verbal monthly installments? will I get some help here in negotiating with creditors?
Negotiations with the creditor
Negotiations with the creditor or creditors are not the easiest, but they are certainly to be arranged in such a way that both parties come out of the negotiations satisfied! As a curiosity, it is worth adding that in Poland we have over 2 million people with a total debt of over $ 40 billion. And half of them have debt below $ 5,000, so what conclusions can be drawn from this?, but that getting rid of debt and getting out of debt is literally within reach for a million debtors! it is a wonder how little is enough for hundreds of thousands of people in Poland to live without debts, on a clean sheet!
Before I get to the topic, I will quickly post a debtor-creditor settlement agreement. Thanks to the settlement, both parties (the debtor and the creditor) will be able to amicably settle matters between themselves, without interfering with a debt collection company, court or bailiff.
Settlement agreement debtor-creditor – model
The settlement template is enough to download, print, and then complete and go to the creditor for negotiations.
It is obvious that at least half of Poles with debt are able to get out of debt in a few months, by taking basic steps such as negotiating debt repayment terms and proper household budget management!
Debt problems are within reach! why are people doing nothing about it? does this situation suit them? after all, even a small debt generates additional costs over time! in the form of even criminal interest.
The debt market is becoming more flexible and open to amicable talks! Therefore, avoiding contact with a creditor or a bailiff is not a good solution, because they also want a quick, friendly and positive conclusion of the case!
Negotiations with the creditor are an opportunity for the debtor and the possibility of getting out of financial trouble, even when we stumbled a leg and failed to pay several installments of a loan or loan! while for the creditor it is also a chance to recover at least part of the money.
How to prepare for negotiations with creditors? 4 tips
- Amicable settlement of the matter for YES! It is worth explaining to the creditor why the delay in loan or credit repayment took place. It often happens that it was a simple oversight or a really difficult life situation, which appeared literally out of nowhere. The creditor should show understanding in such circumstances and agree to repay the debt in installments convenient for the debtor.
- Don’t be negative about negotiating with the creditor! do not require debt cancellation! Know that the creditor, just like YOU, wants to solve the matter amicably. Open yourself to cooperation and compromise. If you’re going to go down, better stay at home and wait for the bailiff’s letter!
- Prepare for negotiations in exactly the same way as you prepare for a job interview! Calculate carefully and think about how much you can pay off monthly, what you can offer to the creditor. It is a good idea to prepare some materials for debt negotiations that you can support during the negotiations, which can be documented inflows to your account and your monthly fixed expenses. Try to meet the creditor’s expectations, in this way you will reach an agreement faster and you will be able to obtain new favorable terms of debt repayment!
- Keep the conditions established during negotiations with the creditor – it is a matter of honor for you!
Be aware that the consequences of non-payment of debts will be severe for your finances, for the harmony of your life and the life of your family, so you should care about timely and reliable repayment of installments that you have negotiated with the creditor! For example, an entry in the BIK or KRD is sufficient to have difficulties:
- taking other loans,
- taking something in installments,
- signing a contract with a telephony or internet operator.
The creditor negotiations are meant to help you get back on track and give the creditor a sign that, despite some difficulties, you are still trying to settle your loan or credit arrears!
Negotiations with the creditor before debts arise?
It is also worth going to negotiations with the creditor before the installments are late. If you expect dismissal or a reduction in your salary, it is worth immediately informing your bank or loan company.
Earlier negotiations of the loan taken will protect you against an entry in the BIK or KRD and keep your credit history impeccable!
You will be grateful in the future that you have entered into negotiations with the creditor in time, you will never have problems with obtaining another loan or loan, or take something in installments! I assure you of this.