Bakit kung sino pa ang may utang, siya pa ang may ganang magalit? (Why is it that when their debts are being collected, it’s the borrowers that usually get angry at their creditors?)(—lame translation. Can you help me with that?)
I don’t know if this is applicable to you but I see this often. When it is time for payment, debtors usually feel antagonized by their creditors even if some of the creditors collect gently. Debtors usually talk negative about their creditors behind their back. And many times, they are hard to reach — they don’t call or text. It’s not an unpleasant sight, yes?
People who want to build a good credit standing like my big brother do not want to have that reputation. They want to pay their debts and keep their relationships intact. I believe that most people would want that too so I compiled these four simple ways to pay your debts.
- Face your creditors
This thing I learned and saw from my father and I believe is extremely important. While I saw other people run away from their creditors, I saw my father seek them out, talk to them and negotiate. I admire this much from my father. He was humble and responsible enough to face them. The last thing he wanted was for his creditors to carry a grudge against him.
I know people who ran away from their debts and when I see them, they do not look at me in the eye. Their world becomes smaller. I wonder how many people they can’t look straight in the eye. They run and hide, and their reputation is tarnished. It would be hard for them to borrow again, I bet.
- Promise only what you can pay, keep the amount low, and commit to your promise
I am guilty of this. Oftentimes, I promise to pay high amounts because of my desire to extinguish my debts immediately. I am impatient on this and sometimes, I feel embarrassed to pay only a little amount. But talking to some creditors, I realized that they appreciate you paying little amounts regularly (than nothing at all) because they see that you are willing to pay your obligations and you do not plan to run away from it.
Another mistake you may make here is to plan to save first for a bigger amount then pay lump sum. I tell you what. Saving is as easy as paying your debt. But is paying your debt easy? No it’s not. The formula is simple but doing it is difficult. Pay your debts little by little and patiently.
- Liquidate your assets if possible
Do this especially when you have debts that are high interest bearing. You can sell some of your investments to pay off your debt. You can always go back to investing when you have extinguished your high interest bearing loans or credit card debts.
- Commit to a lifestyle of thrift
Do you ever have that one item you want to purchase? You drool over it, thirst for it, and you feel like you’ll explode when you do not have it? But alas, you remember you still have debts to pay. So you hold back, pity yourself and walk away. It was hard to do but you still did because it was the right thing to do. Can you relate? Congratulations! You did the right thing. I hear creditors feel bad about their debtors when they see them spend their money in luxury items while they still have debts to pay. If I’m the creditor, I sure will feel bad too. That’s the feeling you want to avoid your creditors to have that’s why you need to commit to a lifestyle of thrift. Hold back spending, after all, it may be a consequence of the choices you made in the past.
Do you have anything more to add? I’d like to hear from you in the comment section. 🙂