debt resolution Quotes

Don't react with fear and panic in the face of debt collector threats. Talk to them and explain your situation. See if you can work out a compromise.

A small debt produces a debtor; a large one, an enemy.

Resolution can be in any form - S4A, SDR or restructuring - but we need an enabling environment where bankers feel comfortable to take decisions and where they also feel obliged to implement decisions in a timely manner.

Debt settlement companies work as a middleman between you and your creditor. If all goes well (and that's a big if), you should be able to settle your debts for cents on the dollar. You'll also pay a fee to the debt settlement company, usually either a percentage of the total debt you have or a percentage of the total amount forgiven.

The creditors are proving impossible to deal with and short of a sudden appearance on the scene of wealthy art patrons, we are going to be turned out of this dear little house where I led a simple life and was able to work so well. I do not know what will become of us.

The debt settlement company will direct you to stop paying your creditor and instead send the money directly to them each month. The company's goal is to demonstrate to your creditor that you don't have the money to pay up - that's your leverage. After a few months, the company will typically go to the creditor and say, "I'm holding X dollars on behalf of your customer. He doesn't have the money to pay you, so you should take this amount as a settlement or you'll end up with nothing." If the creditor wants to get paid badly enough, it will take the money.

If you have a debt issue or credit card issue, start dealing with it. If you have a tax issue, don't just say, 'I'm not going to file.' There are ways to deal with these things, but you must communicate with your creditors, whether it's a credit card company or tax department.

The payment of debts is necessary for social order. The non-payment is quite equally necessary for social order. For centuries humanity has oscillated, serenely unaware, between these two contradictory necessities.

In most cases, if you've gotten to this point, you've already received a letter or phone message from your creditor with the name and extension of a representative. If you haven't, you can call the toll-free number on your bill, but keep in mind that the person who answers may not have the power to negotiate a settlement. Ask to speak to someone who is either a supervisor or in the settlement department, if the creditor has one (as many do).

The restructuring theme can be of various kinds. Some amount of debt gets serviced out of cash flows, some gets back-ended and resolved with sale of non-core assets of the company, and some debt gets converted into equity which might today look like a haircut.

No company can promise an end date, but if you have multiple debts, the first one should be settled within a year.

You'll get much better results by being upfront, answering creditors calls, and responding to their letters. Delaying the inevitable only digs a deeper hole.