Consumers are still feeling the weight of high unemployment despite the fact that there have been some indications in early May that jobless claims have dipped but ups and downs in the unemployment rate have not been enough to reduce the problems related to high levels of joblessness at the present time. It’s because of these setbacks that many consumers are finding it difficult to pay their debts and, since there are creditors who may be aware that certain consumers or particular areas of the nation are still finding problems related to unemployment to be quite cumbersome, it could create an opportunity for some individuals to request a forbearance on their debts.
Those who have been attempting to simply stay afloat by meeting minimum monthly payments are usually going to be facing higher overall costs due to interest. While some consumers have come in the past, been able to meet more than their minimum payment obligation on debts like credit cards, those who are facing cutbacks in wages or unemployment to such an extreme that what was previously manageable debt has simply become too much to manage. Yet, there are some consumers who may be able to get forbearance assistance or other forms of aid from the creditor, but there are some obstacles that certain people may have to overcome before this is possible.
While bad credit consumers and traditional borrowers who are in a great financial position with a spotless credit history are both suffering from unemployment and high levels of joblessness, there are some creditors who may be less willing to help a consumer directly if they have not kept a good credit standing during times where they could afford these debt obligations. As an example, consumers who kept their debt levels low, made on-time payments, and generally avoided overspending are those individuals who may have more leniency from their creditors in terms of a forbearance request than consumers who may have been constantly late, carried a high balance of debt, or have a poor credit history in general.
There are some creditors who may help a consumer by allowing them to avoid payments for a set period of time, as there are some men and women who are beginning to find jobs despite the fact that unemployment still remains a factor that is holding our economy back from more prosperity. Some consumers may be in a position where a new employment opportunity has arisen, but the effects that have been felt from financial setbacks related to unemployment or a reduction in wages has left them in an area where they are struggling to make ends meet. In cases where consumers may have had an excellent credit history and a good credit score, simply talking with a creditor and requesting forbearance on debt payments could lead to help, but for bad credit borrowers or some individuals whose creditors will not offer this form of aid, alternative assistance like counseling or debt management may be necessary.