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19 March 2024

Transparency is key when presenting debt situation

Theda Muller

Published

As I meet numerous people facing debt-crisis in the UAE and globally, I find most of them have not yet learnt that transparency is the key when dealing with creditors. It may be embarrassment or shame that makes them behave thus, but then the debt situation only worsens. Therefore, being transparent and presenting your entire situation clearly, is the only solution.

Enough of hiding and being pretentious because putting up facades is a tiring and exhausting process. Clear yourself out and get to feel free again with the knowledge that you have nothing to hide, you are on your way to recovery.

The most frustrating situation for any creditor or those attempting to help you is when they discover there is much more than what they were presented with, for instance… more credit cards and also in default; more loans in default; other debt perhaps not with banks; Cheques you issued to people you owed money to and now they either cashed it and it bounced and they are opting for the legal path, or they informed you they are going to cash it with the knowledge that you have no funds in your account – same repercussion; you complain the bank continues debiting your cards with extra charges, but you are not honest enough to inform the creditor that you have still been withdrawing cash and making purchases after depositing a payment, i.e. you actually went to use that funds again, putting your account in over-limit and oh, you didn’t mention your account was in over-limit already! …

The fact is the day you decide to open up, take the plunge to becoming debt-free, take ownership and responsibility for your debt situation, is the day you become completely clean. This mindset is comparative to any other addictive mindset and so it means clean. Period!

Never assume you can hide the rest of the stuff because people who are qualified and experienced in dealing with people in debt will know the signs; know the habits; know the lies; know the pretences; know the acts, facades and shows that is put up; know the drama process of the justifications; know how your mind works and how you think; and probably know what you are going to say next, each time you open your mouth.

And why? Because it is their job and they have been seeing thousands like you. So when you don’t unveil all and don’t tell the truth you lose credibility before you could even start to build the trust. Again, it does not pay to make excuses as they have heard those before too.

Somehow individuals facing debt-crisis are oblivious that the people they are dealing with can actually see right through them, because the moment you face a creditor, they take everything into consideration and nine times out of ten, they already know the outcome. It is your job to change their perception and you can.

So how is this possible?


i.    When they see your face they can already connect you to a person or client they know, discussed a debt problem with, or someone they are familiar with and 80 per cent of the time the debtor turns out to be the same type of person. Fact is when you do something long enough, you do become an expert and this progress is just a natural progression.

ii.    They assess your body language, actions, manner of speaking, how comfortable, uncomfortable, confident, or risky you are and again, they are the experts, not you.

iii.    They can ascertain your level of commitment after a few sentences so stop repeating yourself with information that does not make sense to justify your cover ups – it will not serve you.

iv.    They know when you deny knowledge of a particular account being in a bad situation, or if you say you never received any notifications or calls – this is a no-no as they know you simply ignored their attempts to reach you. Rule No 1 – Never project your creditor in a bad light; your key job is also to be humble. SO learn how to show humility.

v.    They can feel your heart and emotions, also your level of sincerity, appreciation and gratitude for being afforded the chance to make wrongs right – so don’t act like they must do you a favour, start being insincere and pretentious, because right there, that is their back up against the wall, your ticket out the door and your entire world crumbling. Respect this very key aspect.

Never try to argue a valid point a creditor has made when you have not unveiled your entire situation, when you know they are speaking the truth and when you find it necessary to justify what they are saying with untruths, because you will come out at the wrong end of the stick.

There is only one way forward and that is complete transparency, honesty, sincerity and commitment – learn to show this in the best way possible because others can feel it when you do it this way.

We are all humans so why should another human not feel your sincerity and know in their heart that they are in the position to help you – Of course they will, that goes without saying but you must do your honest part and that is all there is to it. You must learn to leave the life of excuses behind, unless they are valid and you have the proof to substantiate such excuses, otherwise go the straight road as there are no short-cuts.

[Note 1:  Theda Muller is a UAE-based author of two books: Embrace Financial Freedom Volume One: 10 Proven Ways To Release Debt And Emotional Fears In Today’s Economy, and Volume Two: Releasing Fear And Bouncing Back From A Debt Crisis.
She also conducts webinars and workshops on debt recovery.]

[Note 2: The views expressed are the author’s own and do not reflect in any way, the views of Emirates 24|7. Readers are advised to carry out their own due diligence before taking any decision.]