Personal Debt Forbearance On Repayment Plans–Can Consumers Find Options For Delaying Debt Payments?

While there have been reports that indicate many consumers are beginning to combat their debts and to spend less, there are still some who are having difficulty finding options to manage their personal finances, but one route that has been taken by many is simply dealing with their creditors and seeking out debt relief opportunities through forbearance plans. The financial position of many will often vary depending on one’s personal situation, but there are numerous individuals who have benefited from debt forbearance, as simply being able to forgo debt payments for a short period of time has allowed many to find the stability they need that will allow them to begin making their repayments.

Opportunities for debt forbearance may come through a variety of sources, as nonprofit credit counselors or consumers themselves may be able to work with creditors to work out a forbearance opportunity. Yet, before seeking assistance from debt relief organizations or nonprofit counseling agencies, there have been many financial advisers who have suggested that consumers simply contact the creditor and talk frankly about their financial situation and needs.

As an example, credit card debt has become quite problematic for many, especially due to cutbacks in jobs and unemployment. When consumers are adjusting to meeting their monthly financial requirements on a reduced income or have had a period of unemployment, obviously many find that they fall behind on certain payments, which can equal trouble for their credit history and score.

Yet, there are cases where consumers have simply talked to their credit card lender, or the lender of other various debt sources, to inquire about the restructuring of a payment plan or a forbearance option which may allow a consumer to begin making traditional payments after a set period of time. Even home loan servicers have begun using forbearance programs, as the federal unemployment mortgage assistance program, or HAUP, is essentially a forbearance option on monthly mortgage payments.

When it comes to negotiating a forbearance on certain debts it needs to be understood that not all creditors may offer a consumer the opportunity to delay their payments. It’s for this reason that some consumers turn to credit counselors or debt relief services, but these routes can cost a consumer since fees will be levied for the assistance provided. Yet, consumers who contacted their creditor and asked about delaying their payments may have to turn to outside assistance if they are unsuccessful at negotiating either a reduced payment option or a forbearance plan.

Again, forbearance may not be an option on all forms of credit or with every creditor, but there have been debtors who were able to work out a repayment option which was more helpful for their financial position, especially when a consumer’s credit history and payment record were in good standing. While, again, debt forbearance is no guarantee, consumers are often prompted to take preventative measures like contacting their creditor if financial difficulties arise so that a solution to one’s personal financial problems may be reached before their money troubles and debts simply slip into a situation where finding a solution is more problematic.