|
In the financial world the term "credit" is originated and is often used whether someone pay back their loans or not. For the term "creditor", most of us think that we owe money to someone and when we think of it most of us shrink at the thought of owing someone money. Your dependability and credibility has lot to do with your ability to pay the bills or repay loans in time. If these are not paid in time then your creditworthiness will be at stake.
Successful settlement negotiation with a creditor is always preferred and desirable so as to close the records of the account permanently. A creditor is a company, a bank or an individual to whom a person owes money, following the use credit facility or a loan and such owed money is kept pending or unpaid. Purchasing a home is no small matter, you need a home mortgage loan who actually own the home that is mortgaged with them. In this scenario the bank is the creditor and since you have obtained the mortgage loan you stand to be a debtor when you are unable to pay for the home mortgage loan. The creditor wishes to settle the outstanding dues of a debtor and close the account records by any means possible. But it depends on what kind of debt it is, for how long the debt is kept unpaid, the credit rate of the debtor and the type of creditor involved. In home mortgage loans the creditor takes the possession of the house back from the debtor so that they recover the money owed to them. The homeowner either choses an option to walk away or by forced eviction. Negotiating to make a payment plan with the creditor is a part of getting someone's credit back on track, it is a preferable option for both the parties and the payment plan will not be beyond the schedule of the original period, the negotiated payment plan usually will be shorter. If the creditor cannot workout the payment plan with the debtor usually bankruptcy may occur and the payment outstanding remains unresolved. Very little is known to debtors about the bankruptcy and the majority of them knowing little about finances. Bankruptcy has changed during the last year in comparison to filing in the past. Due to lack of communication money matters have compounded to a point that most creditor and debtor relationships are in serious trouble. As money related priorities keep shifting in an individual. The system errors or due to human errors sometimes creditors show documentation errors and the outstanding dues may be incorrect. In such a case it should be reported to the bureau should be notified to eliminate the errors. Hence it is always important to get a free credit report evaluated periodically. |
| Debts Loans | ||||||||||||||||||||||||||||||||||||||||||
|
|
||||
