Not the End

The problems of having bad debts do not mean end of the way. Bankruptcy serves nobody any good as it is a loss-loss situation for both the creditor and the borrower. Rather a suitable repayment program to tide over the debt crisis is in the best interest of both the parties.

The Federal Laws look after the interest of the debtor but lot of discipline and organization is required to use it to advantage. Also turning around in debt management often requires assistance of skilled credit counselors. One has to exercise caution in this regard as there are lot of con stars in the garb of credit counselors.

Keeping Record

Keeping a good record of all the dealings with the parties involved is very important for a borrower for handling bad debt problems. Be it a personal meeting or a telephonic conversation with the lender, bill collector or the credit bureau, suitable record should be maintained. Such records should include among other things names of the persons talked to, dates and topics of conversations, the agreements arrived at and the commitments made.

Saving Documents

The relevant letters received from the parties to the debt must be preserved along with the envelops that carry postal marks. Any letter sent in this regard by the borrower should be by registered post and the acknowledgement kept on record so that no one can deny receipt of the letter.

While maintaining politeness and cordial relations with the lender or bill collector, the borrower should make it tactfully clear to them that he is aware of his rights, keeping records of all dealings and no way can be coerced or taken for a ride.

Difficult but Rewarding

Keeping record may seem like a botheration to the debtor initially but benefits him in the long run. Once it is done patiently, it becomes an armor in the hands of the debtor enabling him to deal with the lender and other parties with greater comfort and confidence.

It makes debt management that much easier.