Be Patient With Your Debtor(s) – Joseph Akinrinade
With current Nigerian economic situation lenders ahould take it easy with debtors.
Lots of debtors are finding it difficult to repay debts due to unfair economic policy.
Patience is a virtue we can all improve on, but having too much patience can be bad on lenders.
At the same time, having too little patience will make you crazy with anxiety and stress.
Lenders can ease repayment by adopting several recovery options such as:
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Fair loan or debt extension: If the debtor or borrower finds it difficult to pay back in 3months, lender can extend it to 6months to reduce repayment amount.
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Swap method: If the debt is secured with goods or property. Agreement could be reached by both parties on how to swap portion of the debts with goods or property.
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Go for principal: All lenders want to recover agreed principal and interest. However, in a situation where a particular debtor finds it difficult to repay principal loan and interest, it’s better for lender to go principal option. Interest can be pursued afterwards.
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Stop excessive late interest: It’s funny for lenders to be charging late repayment interest. A debtor who is currently unable to repay debts will find it difficult to pay late fees. Lender charging N500 daily or more as late payment fee is not encouraging the debtor to settle outstanding loan.
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Reduce Depressive Threat: Lenders should stop pushing debtors to early grave with deadly threat. Is good talk that brings kola out of pocket. Abusing, cursing and issuing hypertensive notice can’t repay loan. If all your debtors die, will that repay their loans?
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Insurance: Lenders could add insurance job loss rate or expected loss rate to the loan. Insurance can fill the gap should debt turned loss for the lender.
- Joseph Akinrinade