Claims,Legal Settlements,Finance

Arranging credit extensions

One of the debt settlement measures that are open to the public is to ask for an extension. This will mean that the collection procedures are held back until that grace period is over. It can provide the borrower with an opportunity to get their finances in order to clear their debt. This is not a permanent measure but one that is just there to give the consumer some space. You should never accept credit card extensions unless you have a plan to settle the debt. The lender will be much more aggressive after the expiry of these extensions because they will start to doubt whether you are serious about paying.

There are contractual arrangements that specify the circumstances in which the borrower can request an extension. They are normally restricted to a small list of situations but negotiation can expand that list. The borrower should approach the lender with this plan before the final payment date passes. This is to ensure that the account is not in arrears. Once the extension has been agreed then the collection procedure will be temporarily halted. It will be reactivated if the grace period has lapsed and the debt still remains unpaid.