Debt stress is a silent killer. When we allow negative circumstances to enter our system, we feel like we were drowning to death.
My friend, 40 years old, is single, but she was like a single mom providing support to her sister, her sick husband, and their precious baby. It took many years before the couple had a baby so she's a gem, and my friend had spent a fortune from the moment she was in sister's womb. Recently her brother-in-law was brought to the hospital and after few days in intensive care unit, he died and they were left with a huge debt.
She wanted to be with her sister, or at least send her money -- but what could she do? They were not paid salaries for three (3) months. She was behind her rent for three (3) months also. Banks were calling and threatening her. She already emailed them informing about her situation and requesting not to call her during office hours as stress almost paralyzed her system.
Another friend who also helped her family during their critical times is in the same boat. After a short vacation in the Philippines, she got a call from the authorities -- a case was filed against her. Many nights she cannot sleep and one time she told me she was near total withdrawal so I always communicate with her to check what is going on and if she is OK. She suffers from anxiety attacks. Relatives blaming her for such a dilemma adds pain to the injury.
This is the problem when you, as a breadwinner of the family, have exhausted all -- and when you need resources badly for yourself, there is no one to lend you your most required help.
What can I do to help ease their pains but only to listen, to encourage them to face all, to gather all their remaining strength, to fight for their lives, to keep hoping, to know that there is light at the end of the tunnel and to believe in God's promise? I know it is not easy. I know exactly how to be in their boat. It greatly helps to know and believe that if we persevere to solve a problem, we will find the route to get out.
There are lawyers or remedial consultants who can help financially troubled ones but the latter cannot afford to pay the professional fees. Even daily basic survival is a big problem for them. But if one has to change his situation from worse to bad, one has to be resourceful, if without resource, to take the first step with courage.
According to Ms. Theda Davis Muller, founder and chief executive officer of the remedial company EFFRS LLC Dubai, "It is important for creditors to help debtors." She said that after the worst recession in the history in 2008, there was a paradigm shift in handling debts and creditors consider remedial, problem solving, transformation and growth of individuals, companies and organizations. This calls for their empathy. One of top life coaches in the Middle East and speaking from her own experiences, she gives her best advice to people who want to have financial freedom and peace of mind.
One rich businesswoman in our place handled her most difficult debt collection situation in a different way. There was a debtor (from same community) who owed her a huge amount of money. Instead of putting her to jail, she mentored her to establish and run a caregiving center for the elderly people in the US. She was already running one but she did not consider her as a competitor. The latter settled her account on staggered basis.
Mr. Gaurav Bhallah of Lotus Loans and Restructuring Services has this approach, "We are able to give them solutions by moving all the high interest debts to about 5 to 6%. That is a clear-cut 30 to 35% saved on a monthly basis, which totals to a massive amount." He said, "a credit card debt would keep up mounting (if unpaid) because the rate of interest is about 40% on an annualised basis".
Perhaps one day there will be a universal law that financially troubled people -- wherever they are in the world -- will be given a chance to restructure their accounts, with option to pay a small interest per month, say 0.50% of principal balance figure (total 6% p.a. versus 40% or more p.a., normal interest rate) and principal balance payback after many years so they can take their lives back. That 0.50% monthly of millions of debt-trapped people will definitely help the financial institutions breathe extra life to their companies and their collections can be loaned out again. Debtors jailed can get out of prisons and will be happily reunited with their families. They get productive again and the government's expenses for keeping them 'inside' will be minimized.
If remedial consulting services companies will be funded by the government or some sponsors (say, some of world's 2,208 billionaires) make pledges to support their operations so they can initiate massive actions to extend related services to troubled debtors, there will be long-lasting positive impact in the society and economy. There are budgets for rehabilitation centers and correctional programs for drug addicts and other bad elements of society so I think it is worth considering to help bring the lives of troubled debt-trapped people to normal stream, preserve their mental health and well-being, and live lives productively without being aggressively chased and sometimes threatened or harrassed by credit and collection companies.
Korooti, a discount card company, has an accredited services provider, Aman Loans and Overdues Rescheduling Services LLC. It provides free legal consultation services on issues related to problems on credit cards and loans to Korooti members and discounts on related professional fees. (See interviews here.)
Mr. Firoz Merchant, Indian founder and chairman of Pure Gold Jewellers, helped free prisoners including those jailed because of debts. But how many will emerge as modern day heroes like him?
Bad things happen even to good people. Before they know it, they are in trouble, stuck somewhere, and do not know what to do, particularly when there is no right support system of families and friends. Many heavily indebted people get stressed, suffer from depression and other illnesses. Others commit suicide when they feel very hopeless and alone. This has negative effects to their families and communities.
Here are some ideas to help address the issue, and if you have more in mind, please comment below --
- Debt restructuring, with payment of low interest only per month, reduced to 1/2 % or 6% per annum, principal payback after longer period of time, say 5-10 years
- Debt consolidation with very low interest charges
- Debt relief program (government)
- Debt counselling / debt management mentoring
- Job opportunities -- regular or side jobs (with talents and skills matching app / platform)
- Business opportunities / business start-ups packages / online businesses
- Discount cards / vouchers / coupons (to reduce expenses - example is Korooti)
- Assignment of payables to supportive businessmen who are willing to give them opportunities to trade their services for payment of their loans
May all concerned authorities consider remedial solutions for financially troubled individuals so they can take their lives back, have peace of mind and live happily. If we do something to passionately mend broken lives, nobody is left behind drowning to death because of debt.
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Photo credits: Pixabay
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