Believe it or not, your creditors can be a great help to resolve tour mental health issues. Therefore, if you find that you are suffering from mental health issues due to the debt or debts that you currently have, gather the courage and drag yourself to your creditors. Explain your situations to them and tell how hard you are struggling to make two ends meet. This will be beneficial in a lot of ways such as:
• It will create a better impression in the minds of your creditors and they will think that you are an honest person looking for debt relief
• They will even come up with several debt relief options and mind you they do have quite a few in their kitty and
• If you are lucky enough then the creditors may even reduce your total amount outstanding by waiving off a portion of your interest and other fees.
Add to that, if you are facing health issues, creditors, as well as debt collectors, often will help you to deal with both your finance and your health by crafting an easy and effective debt management plan.
There are several reasons for the creditors and the debt collectors to offer you help in such situations.
• One, they seriously want their loaned money back even if it takes a longer time
• Two, they fear that if something serious happens to you then they may lose the entire amount and
• Three, they fear the litigation expenses, loos of time and facing unnecessary hassles if you move on to court or file for bankruptcy.
Most importantly, all debt collectors and money lenders, whether it is a traditional bank or any online money lender such as Libertylending, must follow the set rules and regulations as laid down by the state’s different regulatory authorities. According to these rules, all debt collectors and money lenders are liable to treat any susceptible client fairly.
Creditors are liable to help
There is no reason to be apprehensive or afraid about the creditors as several governments have made specific regulations for creditors and especially for the collectors. They are now more approachable and borrowers can discuss the matter with them when they find it very difficult to manage their debt.
This is a proactive step taken by the governments to monitor the practices of the collectors and creditors and prevent any unruly behavior especially with people suffering from mental health issues due to their unmanageable debt. This set of rules is applicable to all money lenders including banks, online money lenders, credit card providers, and building societies.
There is a specific Standard of Lending Practice to be maintained. This has specific sections such as:
• Handling customers and their dues
• Identifying vulnerable customers and
• Collecting the dues from them.
The rules state that all companies and financial institutions should refrain from initiating any legal action against any vulnerable customer.
Process and possible outcomes
When you talk to your creditors regarding your mental problems you must follow a specific process and keep a few things in mind.
• First, you should not feel ashamed about the debts and do not think that the collector is a stranger knowing that this is the same person who has called you up several times asking for payments.
• Second, do not visit the creditor with prejudice that you will be pressed and pushed even harder once they know that you are unable to pay.
• Third, all creditors and debt collectors have definite policies and procedures to follow for customers who default and are having health issues.
However, nothing will happen if you do not speak up. Moreover, if you do not pay and ignore the creditor, it will put you into deeper trouble. You can get in touch with them over the phone, email or write to them. However, the best way is to meet them in person in their office. You may also take the help of a debt advisor for that matter.
If you are keen on having a written communication with your creditors, make sure that the content of your letters just as desired.
• It should be brief and to the point
• It must include the medical issues specifically that are diagnosed by the doctor
• It must also include the expected duration of such medical problems
• In addition to that, you must also include the name of a doctor treating you currently
• All your income details must be in there
• All types of debts that you have and
• In the end you must include the minimum amount that you can afford to pay back every month or one time.
You will be better off if you substantiate your letter with the prescription of the doctor or the copy of the medical report received from the hospital or clinic attached to it.
The possible outcome of this letter can be varied and will primarily depend on the discretion and policy of the creditors. However, the most common outcomes may include:
• A suspension of the collection calls and activity for a specific time period of say six months
• A proper review of your situation and then resuming the collection activities if conditions are favorable and
• You may also get a suitable debt relief option to deal with your debt and medical condition.
However, after receiving your letter, the creditors may ask for a few additional documents from you such as a letter from the doctor, income and expenditure proofs, debt and mental health evidence and others.
Just like all financial products are not created equal, creditors and their policies may also vary. However, they cannot operate according to their whims and fancies as they will always have to abide by the set rules. Therefore, if you find that even after all these steps followed there is no stopping of the calls from the debt collectors or the mails are still pouring in you can take up the matter to the financial ombudsman in your area. All you have to do is file a complaint that your creditors are not responding well.