Debt Relief Measures To Improve Your Credit Score In Ghana

Debt relief

How To Improve Your Credit Score In Ghana With Best Debt Relief Measures

Prevalently, it’s quite very easy to obtain credit or loan but repaying credit or loan is a different story altogether. Sometimes both creditors and debtors go through hectic situations in order to recover or repay debt. There’s is the craving need to acquire best tips to recover your debt as a creditor and likewise, how to relief your debt as a debtor. As long as financial constraints continue to haunt people, loans and credit’s will continue to be the only remedy. As a result, loan companies and creditors will also have work to do; thus to render loans and credit’s.

Debt Recovery Process For Creditors In Ghana

Loan companies, banks or individuals who get their money locked  in the account of debtors, where it’s difficult to recover may consider this post helpful. Take note of the debt recovery process below to successfully recover your debt fully. Sometimes it’s very hurting to get your business capita stuck  somewhere repayment becomes a hard nut to crack. Debt recovery is the process of pursuing repayment of debts individuals or businesses owe.

✔ Invoicing and notice

✔Creditor- Debtor mutual communication

✔Set a flexible payment system

✔Consistent reminder

✔Debt retrieval/Collection agency

✔Send formal letters of reminder

✔Legal actions (if necessary)

Invoicing And notice

As a matter of fact, try to send an invoice reminder to your debtors when the payment period is overdue. Remind them of the invoice agreement, prices and payment period. State clearly in the invoice the exact amount agreed upon to remind them that they have an overdue payment to make.

Creditor – debtor mutual communication

Right from the crediting period, try to build a mutual communication with your debtor, probably a normal phone call will do. In due process, remind them of time overdue. Try to let them know you live strictly by your agreements.

Set a mutual payment system

Try as much possible to set a flexible payment plan for your debtors. Include period overdue interest and let your debtor understand the overdue interest payment if they want to repay in agreed installment.

Consistent reminder

Consistently, keep a personal contact reminder if the repayment period is overdue. Visit them in person to remind them of the repayment terms and the overdue period of repayment. Just maintain a calm reflection with no hard emotions.

Debt retrieval/debt collection agency

Consider handling your debt recovery struggle to a debt collection agency to retrieve your debt. A debt collection agency is an agency that specializes in the collection of debt. You agree on a pass percentage normally between 25% to 50% for the debt collection agency and they pursue to collecting your debt.

Send formal letters of of reminder.

Consider sending your debtor a formal letter of reminder. Remind them of the repayment time overdue. State clearly the terms of services in the agreement of loan signed. Clearly state your next steps and actions to recover your debt.

Take legal actions

After all efforts to recover your debt went futile, then you can consider taking legal actions against your creditor. Before you proceed to take legal actions, gather all your invoices, agreement and documents, letters sent and with your warning issuance letter. Proceed to see a lawyer to take legal action or lawsuit. Court will issue a court suit letter to your debtor and proceedings to recover your debt begins. Note that lawsuit should be the last procedure in recovering debt.

Debt Relief Measures For Debtors In Ghana

Debt relief is the actual measures put in place to reduce and refinance debt to make it easy for the debtor to repay. Freedom debt relief helps borrowers to manage their debt payment measures in order to have a good credit score in loans and finances. However, filing for your debt to be cancelled by means of bankruptcy, giving lower interest rate or persuading creditors to reschedule debt recovery measures are few of them. Below are some measures to manage and control debt. If you are bathing and swimming debt, consider these debt relief measures to relieve you off your debts.

✔  File for Bankruptcy

✔ Alert Creditors before repayment period overdue

✔ Debt Consolidation

✔  Creating a repayment Budget

✔ Cancellation of Debt

Accepting bankruptcy

Filing for bankruptcy helps a person to have a debt relief by discarding debt or by rescheduling a plan to repay debts. Bankruptcy case however, can be filed when the debtor proceeds to file a petition with bankruptcy court. Bankruptcy petition can be filed by an individual, an entity, spouses, or by a corporate body. So you can file as an individual for all your debt to be pardoned. You can consider filing for your debts to be pardoned or rescheduled at the bankruptcy court if your reasons are genuine, your debt may be discarded.

Alert creditors before repayment period overdue

Before the overdue period, do well to alert your creditors on repayment failures. Let them know your reasons for overlooking the due repayment plan. If possible, write a formal letter stating clearly when you will begin the repayment plan. Seek for lower interest rate as a result of your inability to repay the loan or credit in due time. You may be given a rescheduled plan if you have a genuine concern.

Debt consolidation

According to Wikipedia  debt consolidation refers to  refinancing which means taking out a loan to pay off many others. It is commonly refers to a personal finance process of individuals addressing high consumer debt. Debt consolidation secures a lower overall interest rate to the entire debt load and provide the convenience of servicing to only one loan or debt. It helps to pay all your loans or credit with a monthly loan on an effectively lower interest rate. You can consider opting for debt consolidation if your debt repayment is getting out of your control.

Creating a debt repayment budget

Concentrate on Creating a repayment budget for your repayment schedule on how you are going to manage debts, debt repayment and debt planning. Budget to pay first the highest debt with the highest interest rate. Identifying the kind of debt it is, method of repayment and source of funds for repayment. Budgeting a repayment plan is the best measure to control and manage debts.

Cancellation of debt

Debt cancellation occurs when creditors willfully pardons or forsakes to recover the funds owed by a debtor. Literarily by means of pardon, persuasion or debtors inability to repay due to certain circumstances. Cancellation of debt is normally done with a mutual persuasion by debtor or the debtor’s ability to do something in place of funds owed. A debtor may offer tangible reasons for debt cancellation such as sickness or offer a peculiar service. Other reasons may be death and conviction.

In conclusion, debt recovery and repayment are inalienable. Once there is a debt, there should definitely be a repayment and in case you find it difficult to recover or repay your debt consider the recovery and freedom debt relief measures, process above to get your funds and credit score secured.

Also read…

How To Make Personal Monthly Budget To Control Expenses and Improve Your Savings Significantly


By Thomas Goodman

Thomas Goodman is a Degree Holder, a prolific Personal Finance writer and Expert. His work has been recognized by Millions of people round the world and the United States precisely. He has since over a decade, helped people to manage and gain full control over their finances through his adequate and concrete write-ups. His Goal is to inform and educate people worldwide on Personal Finance, Budgeting, Banking and Finance, Career Planning and Savings. He loves to Educate people to attain their financial freedom. Reach out to Him personally on [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.