Non Diminishing Debt

There is one common thing that every individual is facing today, and that is the debt.  Debt is the amount taken to meet the expenses and the person taking is called as borrower, and the giver is called as a lender.  The relationship between the borrower and the lender is very delicate.  The relationship comes to an end as soon as the debt amount is returned to the lender.  But what if the borrower is not in a position to return the debt amount?  There are many ways of settling this issue.  Two of the most common ways of settling this issue is debt settlement and debt consolidation loan.

What does debt settlement imply to?

A debt settlement refers to that situation where the borrower tries to settle with the lender or discusses with the lender to either reduce the complete amount or at least a part of it is waived off.  Now it depends on the lender whether he accepts it or not.  But the second option of debt consolidation loan is totally in your hand.  As a borrower, all you need to do is, to sum up, all your expenses and take an amount equal to that amount and clear all your dues.  If you are taking the debt consolidation loan for the first time, you have a chance of getting an additional loan amount, but you are a defaulter in payment of loans, there is a risk of not getting the loan amount.  So the condition to be understood here is that payment of loan amount has to be done in time only then you will have a chance of getting a new loan the next time you approach any lender.  This is where the services of an experienced professional are required.

Worried about hiring the professional, always check out the debt settlement reviews about that professional. A review is nothing for a personal opinion regarding a service enjoyed by the professional.   It may be good or bad as it the person’s personal view.  As a person in need, it is you who have to ensure that you get the best service for your problem.

Have you ever heard of a term called non-diminishing debt?

Well, it is quite simple.  Normally a debt is a debt no matter who takes it. The movement you start clearing the debt amount in parts or in full, it starts diminishing or decreasing.  Due to various circumstances, you as a borrower will not be in a position to clear the debt.  You are forced to pay the interest amount, and even you will be accustomed to paying the monthly interest instead of clearing the principal amount.  Now, this is bad and will make the debt non-diminishing debt.  Still confused? Well, debt decreases when you clear the amount.  But when you are busy clearing only the interest amount, the main principle remains as it is and will be undisturbed.  So how are you planning to clear the main principal amount?  You need to sketch out a plan to clear the debts and mainly this plan should be implemented to avoid paying additional interest.  Again, we have two options- either you list out all your debts and plan accordingly or approach a good debt settler.

A debt settler is a person who works on your behalf and becomes a mediator between you as a borrower and the lender.  With his immense experience and talent, he always tries to succeed in his attempts.  Only one issue here is he will not work for free for you.  You need to reimburse the amount towards his professional services.

Now let’s start planning how to tackle this non-diminishing debt.

How to tackle non-diminishing debt?

  • Make a list of all your debts irrespective of the size of amounts, i.e., small or big. The list should include the date when it has to be repaid.  This tells you how much time you have to repay the debt or go for debt settlement.
  • Then sorting has to be done. Sorting is important because there are some amounts of debts which can be settled by mere discussion with the lender.  If the lender is satisfied with the discussion, he may extend the time limit, reduce the interest rate or waive off the amount whether partial or full amount.
  • So our list of debts is sorted and becomes less. But ensure that the debt settlement is done immediately because if the lender does not agree to the new terms, then you may have to include that debt amount also in the list.
  • So clarity in this regard is very necessary.
  • Now sum up all the debt amount and approach a lender who is willing to give you a new loan. After taking the loan, clear all the amounts as planned.  This point is very important.

If you use the new loan amount on something else, then you will land up in a new problem.  Once people lose trust and confidence in you, it is very difficult to regain it.  So, ensure that the new loan is being repaid in time.

Clearing of new debt consolidated loans

Debt Consolidated Loans

Now that all your old debts are cleared plan well in advance for clearing your new debt consolidated loan amount.  This initiative will solve your problems in the future.  A periodic saving will sort out many issues.  I know periodic saving is like a drop which may not be used currently but when you start regularly accumulating after a specific period definitely the quantity will be more.

Secondly, try to avoid unnecessary expenses.  This saves a lot of money, and you can accumulate it to repay the debt consolidation loan amount.

Just breaking head about how to tackle these issues is not enough, you need to start implementing all the suggestions given here.  Apart from small savings, plan to save in other investments which give you high returns.  This will help you in arranging funds for clearing your new debt amount.  A good experience professional is required for this sort of work who will see that you do not bear all losses.

The thought of repaying the loan amount is itself a good start.  So plan and start implementing your plan.

Tags : Debt Consolidated LoansDebt SettlementNon Diminishing Debt

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