At some point we all wish we could have a little breathing space in life especially when we are are under financial pressure and life feels out of control. Breathing space allows you to stop the noise, the the constant calls, emails, SMS from creditors and it will also help you know your True position of affordability which puts you back in control.
A bank, lender or collection agency will try to contact you using every channel possible and its wise to speak with them as ignoring them doesn’t resolve anything and they will only increase their efforts which in turn only serves to create more stress and worry. Remember, when you do speak with them that although it may not always feel this way you are still in control and having your ‘true’ affordability position in front of you will give you the confidence you need.
Individually each of your creditors has no real idea of your financial position and your ability to pay other then their internal data which is based off of archaic credit reports and previous payment history. No creditor knows your ‘true’ affordability position you are in today compared to when you first took out your product with them which you must always keep in mind.
No creditor will know your current salary or who can contribute to your family income or who owes you money other then what you have told them previously. No creditor will know who you owe money too unless it reported to the credit bureaus which means they wont know about your rent, utility bills, property tax, childcare costs, car maintenance, insurance, subscriptions, fines, debts, money owed to friends or family and they will have no idea on your costs to live. When they ask you, “what can you afford?”, they are simply trying to maximize their share of your wallet as its in their interest to get paid as much as possible before you start paying everyone else.
So, if you want to be in control of the conversation, do you know how much can you afford to pay?
mybreathingspace 