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The Debt Collector is Calling” after you finish reading this article.)īut you know what the creditor already knows? Not everyone will be able to repay, and they factor that into the interest rate they charge. (To better deal with debt collection calls, you should read “ Hooray, You Are in Collections! The Debt Collector is Calling. The fact that creditors, debt collectors, and many debt relief companies know that you can’t see is that debtors can be easily emotionally manipulated for the other party’s benefit. The entire end game of the typical financial transaction is just that, to make a profit, not damn you to hell. The creditor wants you to repay, not to save your soul, but to collect as much as possible back to maximize their profit. But if you feel them, they are excellent tools to manipulate you into repaying for the benefit of the creditor, not you. The reality is that while those feelings are all present in one delusion or another, they are not reality. #DEBTINATOR SOFTWARE DEBT SETTLEMENT PROFESSIONAL#You let the professional firefighters attack the blaze logically and rationally that will best put out the fire. You don’t ask the person whose house is on fire what the best way to put out the fire. As a result, people feel they have let down their creditors, and they will think less of them they struggle with feelings of failure and are made to feel immoral because they can’t repay. Therefore, the lender is taking a calculated risk and covering that risk with interest charged by engaging in the transaction.Ĭonsumers are constantly confused by this, and in their hour of problem debt, they often assign feelings to the fact they can’t repay as agreed because life has dealt them a bad hand. The lender has no idea if the borrower will be in a fatal car accident or choke to death on a baked potato. The bank cannot estimate if the borrower will be laid off or have their house destroyed by a volcano. Both parties, however, are guessing what the future holds for them. The lender hopes to recover the asset lent, and the borrower wishes to repay that which has been borrowed. When a lender and borrower enter into a transaction to borrow and repay, they both are taking a risk. No moral component is tangled in the decision to lend or in pricing for a profit and coverage of a projected loss. Notice there is nothing moral attached to the act of lending. And what is interest? Well, that’s the number used in the formula that a creditor creates to estimate how much extra money they will need to add to the amount lent to make a profit and cover their estimated losses from engaging in this lending business. It bears you no ill will.ĭebt is created when an entity gives something of value in exchange for the pledge to repay that value in the future, often with some additional compensation calculated by interest. It becomes an unmeetable installment in the exchange of money according to a contract or agreement.Īll that other stuff, the stigma, morality, guilt, shame, and things that make us feel poorly are creations inside our heads and not a function of debt itself (see Is Bankruptcy Sinful and Bad or Right and Moral?). And what it is, is a financial obligation that becomes problematic or unsustainable. It is neither an object that can be stigmatized nor engage in some form of judgment or morality. The bottom line about debt is it is just debt. #DEBTINATOR SOFTWARE DEBT SETTLEMENT HOW TO#But Here is What I’ve Learned About How to Get Out of Debt If there are perceptions about debt, they’ve floated through my mind if there are moral decisions to be weighed regarding debt, I’ve also wandered across all of those boundaries. If there were mistakes and beliefs to be had, I’ve had them. #DEBTINATOR SOFTWARE DEBT SETTLEMENT FREE#Take a look at my free How to Get Out of Debt Calculator to review your options.Īs a student of the history of debt, having lived through debt problems myself, and having founded and run a credit counseling organization, I have a unique view from inside and outside the debt world.So Armed With This Knowledge, What Now?.If You Are in Deep Debt and Older Than 40, You Must Act Now.Debt Relief Mistakes Are As Old and Debt.But Here is What I’ve Learned About How to Get Out of Debt. ![]()
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