Informal Debt Arrangements: What They Are, and Why Banks Don’t Want You to Know About

Debt can feel like an insurmountable burden, weighing heavily on your mind and wallet. It’s a situation that can leave you feeling isolated, stressed and without options. Banks may not be the first place you think to turn for help, and for good reason. They often keep information about informal debt agreements close to their chest. These agreements can be a lifeline for those struggling to manage their debt repayments. In this blog, we dive into what informal debt agreements are, how they work, and why banks might not want you to know about them.

Consumer Rights Advice - Informal Debt Arrangements: What They Are, and Why Banks Don’t Want You to Know About

What Are Informal Debt Arrangements?

So, what exactly is an informal debt agreement? Informal debt agreements can take many forms, depending on your specific situation, the kind of debt you are carrying and the creditor your debt is with. Some common examples of informal debt agreements include reducing or freezing interest on your debts for a period of time, which can help prevent your balance from growing, which can make your debt even more overwhelming and harder to pay off. Another option is holding payments for a period of time, which can give you a much-needed break from the stress of making payments, allowing you to catch up on other bills or expenses, catch your breath and re centre yourself. In some cases, creditors may even partially or fully waive your debt if you’re able to demonstrate that you’re in a particularly difficult and or unmanageable financial situation. These types of agreements and others on offer can be incredibly helpful in getting you back on track with your life and in turn your debt repayments. These agreements can help you make progress towards paying off your debt without incurring additional penalties or interest, which can be, and is extremely liberating for anyone struggling to make ends meet without a light at the end of the tunnel.

Why Banks Don’t Want You to Know About Informal Debt Arrangements

The question is, why don’t banks want you to know about informal debt agreements? The answer is simple: Banks have a vested interest in keeping borrowers in debt, banks make a lot of money from the interest they charge on your debt. You see, if you’re struggling to make payments, and / or missing payments here and there, the banks keep adding interest, as it’s in the bank’s best interest to do so. As the interest they charge is a significant source of revenue for them. Informal debt agreements, can reduce the amount of interest that borrowers have to pay, potentially cutting into the bank’s profits.

Consimer Rights Advice - Why Banks Don’t Want You to Know About Informal Debt Arrangements

As a result, it isn’t in the banks best interest or that of its shareholders, to notify its clients about informal debt agreement options, or provide clear information about them to borrowers. In some cases, banks may even discourage borrowers from pursuing these agreements, instead steering them towards more traditional debt repayment options. However, it’s important to remember that banks do have an obligation to work with borrowers in good faith to help them manage their debt, and that there are laws and regulations in place to protect borrowers’ rights. If you’re struggling with debt, it’s always a good idea to explore all of your options and to seek out the guidance of a qualified debt negotiation agency so you can find out what your rights are and a possible strategy that might be applicable to you and your current situation.

Get Expert Help with Informal Debt Agreements from Debt Angel Solutions

We can help, At Debt Angel Solutions, we’re are experts in navigating the world of informal debt agreements. Our team knows exactly what to say and do, what your rights are and how to secure you the best possible outcome based on your unique situation. We’ll put together an actionable “Get Out of Debt Strategy” that outlines what you’re able to pay, what option would be best for you and present it to your creditors on your behalf. Making sure you end up in a better overall financial situation than when you came to us. We’ll also help you understand your legal rights and obligations, so you can make informed choices about which pathway is best for you.

Navigating Debt with Expert Assistance: How a Debt Negotiation Agency Can Help You Achieve Financial Relief

Working with a debt negotiation agency like ours, means that you’ll have a team of experts in your corner, fighting hard for your rights. We understand how the creditors work, what they can do and how far they can go, we also understand that debt can be overwhelming and stressful, and communicating with your bank directly about the trials and tribulations you are experiencing can be a very overwhelming and upsetting thing to do, especially when you need to explain your situation time and time again to someone at the bank who for the most part is only interested in getting you to commit to paying the money you owe with little to no understanding or empathy for your situation. Sadly many creditors view you as a number rather than a person reaching out asking for assistance when your world already feels miserable and dark. When you work with us, we become a mediator between you and your creditors, shielding you from the hoops you need to jump through and becoming your guiding light throughout the process, we are there for you, as your point of contact, you speak with us and we in turn speak with your creditor about your situation proposing what we want them to do to help you get out of the situation you find yourself in, so you can get back on your feet with your head held high. As such, we will make the process as easy and painless as possible for you. It is important to note, we are a very ethical company that operates at a very high level of integrity and won’t take on a client if we can’t guarantee to save you more money than we cost.

Debt Angel Solutions: Your Partner in Regaining Financial Freedom and Control

Now you know what is possible in relation to Informal Debt Agreements, and that you are not alone, isn’t it time you take back the reins of your debt and secure your financial future? Don’t let the banks leave you in the shadows any longer. Our Debt Angels are standing by, to offer you guidance and support in navigating the process of negotiating an informal debt agreement with your creditors. Reach out to us today to explore your options and take the first step towards reclaiming your financial independence and in turn reclaiming your life.

Debt Angel Solutions: Your Partner in Regaining Financial Freedom and Control
Your Debt Reliefe Plan Manager - Kitty Thomas
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