The moment you missed a payment, your account would be automatically labeled as past-due. Wherein, failure to pay every month after reaching the past due date, the more it will be difficult for you to catch up. Eventually you’ll have to face legal actions.
That said, here’s how you can keep your past due out of legal actions.
1. Prevention Is Ideal or Settle as Early as You Can
Although there are cases where you can’t fully prevent having your account past due, especially if you have a lot of financial responsibilities, you should try to prevent the issue from getting worse, because an account that’s only a few days or month from its past due doesn’t have to suffer from serious consequences.
In situations like this, you’d probably receive a phone call or a letter of reminder telling you to settle as soon as possible. However, once your account gets more overdue, here’s when everything gets serious and a little out of control. In times like this, you’d have to consult a law firm, such as The Weisblatt Law Firm to help you with your problem.
Furthermore, the impact on your credit score would also be more noticeable once your account is 90 days past due.
2. Making a Lump Sum
Another option to have a good record on your account again is through making a lump-sum payment to shoulder the entire past-few balance.
However, the problem with this would be, the more delayed you are, the higher the minimum payment would be. Nonetheless, this is still considered to be one of the easiest ways to recover your account and prevent it from getting a negative rating.
3. Talk to Your Creditor
There are instances where the past due balance would be difficult to pay right away or in full because it has gotten too big already– due to additional charges, and fees. Whenever this happens, the best thing you can do is talk to your creditor and try to ask if it’s possible to spread the past due balance in 2-3 months.
Through this, you’ll have ample time to collect the money and be able to pay accordingly. If your creditor agrees with this, still try to send extra payments whenever you can.
4. Try to Work out a Settlement
Even when you already can, it’s ideal to call them first before you start repaying. Likewise, try to work out a repayment schedule that you can stick to each month. If possible, try to ask them if they can remove the late fees as well.
5. Push the Envelope
As a rule of thumb, don’t ask for a little bit off. Instead, be straightforward an ask if it’s possible for them to remove all the late fees, since you’d be paying already. Aside from that, it would be better if they can also take out the negative item in the credit card report.
Keep in mind, you wouldn’t be able to get any of these if you wouldn’t ask. Also, the longer you haven’t paid on the debt, it’ll surprise you how much principal would be taken off– only if you ask.
These are just some of the ways on how you can prevent facing legal actions, even if you’re already past your due.