A responsible way to pay off what you owe
A responsible way to pay off what you owe, if the idea of paying less to creditors to resolve your debt doesn’t sit right with you think about this.
Creditors don’t judge you
For them, settling debt is just part of doing business. They don’t plan on always getting paid back 100%. Don’t worry they make up for it by charging interest and fees. In fact, you may have already paid back most or all of the amount you actually charged.
Creditors run sophisticated businesses and are constantly making projections and adjustments to the amount of debt they plan to receive. Bad debt is a part of any business which has receivables. I will briefly define bad debt.
What is bad debt?
Bad debt occasionally called noncollectable accounts expense is a monetary amount owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for various reasons. Fun fact writing off bad debt is a positive for a creditors income statement.
You ARE being financially responsible
You are paying back your creditors based on what you both agree upon. They don’t take it personally, so why should you? When we call our creditors the individual answering the phone did not personally guarantee the debt you owe. Furthermore, you are not taking food out of the mouths of credit card company employees when you find a responsible way to pay off what you owe.
Are you behind on your payments? Has your financial situation changed due to the pandemic? If you answer yes to either of those questions then it’s time to look for a responsible way to pay off what you owe.
