Request a moratorium on your debt to release 'extra cash'
A credit repair strategy that can give you access to some 'extra cash' is for you to make a
request of your largest creditor on your credit report to grant you a moratorium on your debt
This is simply a request made in writing to the creditor to legally and officially suspend your
monthly payments on your debt for a set period of time.
Usually for three to six months. This option is usually granted as a courtesy to customers
that are current on their debt and are experiencing a hardship situation.
You should explain to the creditor that 'due to circumstances beyond your control', you are not
able to continue with the regular payment. However, you do foresee to re-instate the
payment in the very near future.
request of your largest creditor on your credit report to grant you a moratorium on your debt
This is simply a request made in writing to the creditor to legally and officially suspend your
monthly payments on your debt for a set period of time.
Usually for three to six months. This option is usually granted as a courtesy to customers
that are current on their debt and are experiencing a hardship situation.
You should explain to the creditor that 'due to circumstances beyond your control', you are not
able to continue with the regular payment. However, you do foresee to re-instate the
payment in the very near future.
If the creditor does not grant you a
full moratorium of your payment, it
may grant you authorization to lower
your payment for a set period. The
creditor may even allow payment of
‘interest only’ until such a time that
you can resume your regular monthly
payment on your debt.
Regardless, your goal is to find that
'extra money' so that you are able to
maximize the amount that you send
to the smallest debt on your credit
report so that you can effectively and
quickly reduce your overall debt.
Do not stop at asking only once.
full moratorium of your payment, it
may grant you authorization to lower
your payment for a set period. The
creditor may even allow payment of
‘interest only’ until such a time that
you can resume your regular monthly
payment on your debt.
Regardless, your goal is to find that
'extra money' so that you are able to
maximize the amount that you send
to the smallest debt on your credit
report so that you can effectively and
quickly reduce your overall debt.
Do not stop at asking only once.
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Meaning that if the creditor declines your request the first time, do not hesitate to submit a
second and even a third request.
Make them understand that your credit situation is dire and that you will greatly appreciate
any help they can extend to you.
In addition, do not stop at only requesting such a moratorium to your largest creditor.
Make your request to three or four creditors with large balances. The more money that you
can 'make available' the more money you can send to your smallest debt, and the faster you
will eliminate your debt.
Remember, there must be a good enough reason for the creditor to consider suspending
your monthly payments.
Just don't go overboard over-emphasizing your dire situation that they cancel your line of
credit all together.
second and even a third request.
Make them understand that your credit situation is dire and that you will greatly appreciate
any help they can extend to you.
In addition, do not stop at only requesting such a moratorium to your largest creditor.
Make your request to three or four creditors with large balances. The more money that you
can 'make available' the more money you can send to your smallest debt, and the faster you
will eliminate your debt.
Remember, there must be a good enough reason for the creditor to consider suspending
your monthly payments.
Just don't go overboard over-emphasizing your dire situation that they cancel your line of
credit all together.