How to make payments for your debts

When debts started to pile up, how will you handle such situation?

08:38 02 October 2013

When you have overlooked or when you have taken for granted monitoring your debts, they will eventually pile up. But don’t panic. Be focused and think. Ask yourself, are you capable to pay these debts or not?

• When you have the capability to pay these debts

You know very well if you can afford these payments or not. When you have the means, that is, when you have a job, you can settle all of these if you will just concentrate on how to settle them. Make a plan. Make a list of the debts and identify which are of urgent or top priority in nature. That is, if failure to pay them will create more serious scenarios for you. These could be mortgage, house rent or tax debts. Other non-priority debts may include credit debts, benefits overpayments, student loans, personal loans to friends or family and many more.

While making payments for the more urgent debts negotiate or discuss your situations with those you have non priority debts to avoid further problems. If there is still some money left, maybe you could pay for them gradually. But if the means are no longer enough to cover payments for them, it is best to negotiate for more time allowance to enable you to make payment. You may write a letter or make an appeal. If you do not do anything about it and just keep silent, your creditors might think you are no longer interested in paying your debt which may force them to file a case in court against you. At least make them know your current situation and make arrangement how they can help you make your payment.