Some consumers who are facing financial hardships in relation to their personal debt are in a position where they are unsure of not only what payment obligations they may be able to make but whether there are certain priorities in terms of their debt repayment requirements. There are those men and women who have been unemployed for quite some time and in cases where financial situations have arisen that may lead to a consumer’s debts being much greater than their income, some men and women have had to look at what they owe, the types of debt they have, and decide whether there are some debts that can go unpaid or could stand a missed payment versus those that are vital.
Yet, some consumers may be unaware that there are not necessarily debts which must be sacrificed if financial troubles arise, as there may be some help from various types of assistance or aid to help those who are facing certain financial hardships. Understandably, there have been some homeowners who do feel that priority of certain debts does outweigh others, but in situations where consumers may have had a positive credit history there may be more opportunities for assistance available rather than consumers doing damage to their credit score by missing payments.
We have seen reports in the past that there are some consumers who when they were unemployed may have focused on certain types of debt, like their credit cards, as a way to stay afloat so it was apparent that these consumers were in a position where they made it a point to pay off their credit card bill on a monthly basis so they could continue using this line of credit. Also, some consumers went a completely different route and only focused on debts that were secured, as unsecured credit cards or other forms of unsecured debt obligations were not deemed as vital by these men and women and as a result they may have missed payments or defaulted due to their financial problems.
However, some consumers may benefit from taking action early on when financial troubles arise or when unemployment looks like it could be a long-term problem due to the fact that many creditors may be in a position to help consumers. It needs to be understood though that there are no guarantees in this particular type of hardship assistance and consumers may be facing a predicament where their creditor is unwilling to help them during this difficult time that they may be going through.
Yet, consumers have been able to talk with their credit card company, bank, or other lenders and explain their financial position, which could lead to hardship assistance. Some creditors may offer a forbearance period for these consumers, others may reduce the minimum monthly payment required on certain debts, some may actually forgive a portion of a consumer’s debt, but again these are not guaranteed because a consumer has hit a difficult financial situation in their life.
While credit counseling agencies may help consumers work out a debt management plan, which could reduce the overall payments they must make on a month-to-month basis, some consumers may be able to talk with their creditor directly so that they can find solutions for different obligations that may be currently in their financial life without having to sit down and prioritize what debts they will pay and what debts they may let fall into delinquency, as this could do a great deal of harm in the financial life and credit score of a consumer.