During the last six months, financial hardship has become a more and more widespread phenomenon. Given the political situation in the world, prices are going up, and people’s ability to pay their bills on time is going down. All the while, inflation is decreasing these people’s purchasing power, adding weight to an already heavy burden.
The impact of these changes is not only felt in developing countries. While it’s true that the citizens in struggling regions have an even harder time now than before, the real measure of one’s financial situation will always be relative to the habits and needs one has developed around money over the years.
This means that regions that have been thriving for a century or more, especially Scandinavian citizens in countries like Denmark, Sweden, and Norway, are also feeling the price changes and inflation levels in their day-to-day lives. And according to a report by an authoritative financial advisor in Norway, the number of people who apply for loan with debt collections (lån med inkasso) is higher than ever before, among other such measures of financial stability (source: https://zenfinans.no/inkassolan/).
But what is a loan with debt collections; is it realistic to apply for it; and how can they help you solve a debt collection case? Read on for the answers to these questions and more.
What is a “lån med inkasso” and why should I care?
To understand what a loan with debt collection (lån med inkasso) is, it helps to first have a clear idea of what a debt collection is. It is, in simple terms, the process of recovering money owed to an organization. Debt collectors are employed by a company to collect on overdue payments, unpaid bills, and delinquent accounts.
Debt collection agencies are responsible for collecting debt from people who have not repaid their loans or credit card payments. A debt collector can call you, visit your home or workplace, send you letters or postcards, and even contact your friends and family members.
Debt collectors work with banks and credit card companies to collect on these debts. They also work with utility companies to recover unpaid bills.
So what happens if you want to take up a loan, but you have debt collections? In most cases, your loan application will be denied. The reason for this is that most banks do not want to take on the risk of lending out money to someone who has a history of not repaying their loans.
Can you get a loan with debt collections?
The short answer is yes. As long as you have some form of collateral – ideally in the form of a home you own – it is still possible to get a loan with debt collections. This collateral gives banks the surety they need that they will get their money back in case you default on your loan. And whereas most traditional banks will still be averse to giving you a loan if you have a debt collection case going on, there are some types of banks that will be able to help you.
These banks have adjusted their business plan so that they can take on more risk, while still having a way of getting their money in the case of defaults. In some cases, they can even help resolve the debt collection altogether.
But whether you can get a loan with debt collections or not, it is always advised that you know the best way to get out of this debt situation. Here are some tips.
4 steps to work out a payment plan with a debt collector
If you are dealing with a debt collector, it is important to ensure that you work out a payment plan that is mutually beneficial. This section will provide 4 steps to help you work out a payment plan with a debt collector and pay off your debts, with key tips gleaned from StepChange Debt Charity (source: https://www.stepchange.org/debt-info/arranging-payment-with-creditors.aspx)
Step 1: Understand the situation
The first step in working out a payment plan with a debt collector is understanding the situation. You need to know what kind of debt you have, whether or not it is in collections, and how much money you can afford to pay back each month. You should also be aware of any other debts that may be causing financial hardship for you.
Step 2: Make contact with the debt collector
Once you have an understanding of your financial situation, make contact with the debt collector and explain your situation. This includes explaining any other debts that you might have as well as your current financial situation. If there are any mistakes on your account, you should be able to correct them before continuing with the payment plan.
Step 3: Make an offer
The debt collector will likely make an offer based on the information they received from you when they made contact with you. The debt collector will also likely have a payment plan that you can use. Again, make sure all of your financial information is correct and if there are any mistakes on your account, correct them. If the debt collector agrees with your offer, they will set up a payment plan for you.
Step 4: Make monthly payments
Make monthly payments according to the agreed upon plan and pay the debt in full after your last payment. You can also negotiate with the collector and see if you can extend the repayment period or lower your monthly payments.
After reading this article, you should now know the basics of loan with debt collections, and how to proceed.
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