The foremost stage of Debt Collection is sticking to a payment plan
- August 16, 2021
- Comments Off on The foremost stage of Debt Collection is sticking to a payment plan
Do you have a delinquent debt? Have you experienced financial setbacks? Whatever your situation, it matters less how you got behind than how you will get ahead. This article addresses the first stage of debt collection Dubai actions that is asking you to voluntarily commit to a payment plan.
Requests for Payment
In many cases, tactics are employed such that it doesn’t seem like your creditor is making a “request,” nevertheless, they have no way at this point to force you to pay anything.
If you have some cash and want to get rid of the debt, you can negotiate a lump sum payoff. Often creditors are willing to discount the debt to get a substantial payment. In my experience, discounts range from 10-65%.
If you don’t have cash but do have income and can afford a monthly payment, you can likely negotiate a monthly payment concerning debt collection in UAE. Monthly payments will keep the creditor from filing a lawsuit but there are two major problems. One is that the creditor is not likely to discount the total amount owed and the other is that you will likely be charged interest on the balance. In some cases, the payment amount is so low that with interest added in it could effectively take “forever” to get the debt paid off. In other words, you will have this debt forever unless you can increase the monthly payments later or come up with a lump sum payoff offer down the road.
If the creditor can’t substantiate that the debt is yours or if you don’t have the cash to offer a payoff or if you can’t make payments then you can simply tell the creditor to leave you alone.