Personal Finance: Why it is important for creditors to help debtors

The ultimate outcome when a creditor fully supports a debtor is they not only save their organisation, but their jobs and the economy get to benefit and grow, too. But tell me how many creditors even realise this outcome when they are seated in positions of strength , believing in a fallacy it would be impossible that one fine day they could arrive at their offices to find no job, simply because nothing was evolving, where they themselves put the ‘stoppers’ in place, stumping the process of evolution.

Nobody is an island, we do not exist and sustain ourselves independently, we co-depend on the cycle of business to generate our income and livelihood from a process of evolution.

This process can be beneficial if acted upon in the serious light it was presented; i.e. the debtor approaching you asking for your help to enable them to continue fulfilling their commitment to repay their debt. If the outcome is not positive then the downfall will be:

1. The debtor is unable to fulfill their obligations so instead of facing legal action, they opt to abscond;
2. Insurance companies will not remain ‘bottomless pits’ although organisations assume so because there will come a time when either premiums will be unaffordable or irrational, or simply they will refuse to settle claims.   No business can sustain itself when the ratio of expenditure far exceeds income and that is the law of economics, not rocket science;
3. Jobs will become redundant as the record reflects of late as employees will not be able to achieve sales targets, as there will be no more clients who either qualify for credit or facilities so no new business will be sustaining that organization;
4. The perception that if things worsen employees can opt to leave and secure alternative employment in other countries is a fallacy, because the situations outside are much worse than what it is here and let me share with you that the power of money remains regardless.
5. Most appreciate and respect policy but when it pertains to a human factor where the expat creditor employee is in a position of strength and does possess the ability to extend a helping hand to the debtor, then why the reluctance to co-operate?
6. Why do creditors relay multiple responses and then when debtors opt for one of those offers, they deny the offer and leave the debtor in a fearful emotional state of mind simply because the creditor assumes that the debtor cannot escalate the outcome since there is no proof of the offer? Very cleverly creditors are not recording offers on any form of email or documented correspondence, hence resulting in the debtor feeling more helpless than before? This is true, it happens as we experience it daily but there is no funnel for debtors to protect themselves against this very brash form of behaviour meted out by expat creditor employees, which is sincerely heart-wrenching, as they are further transforming debtors into an emotional mess state of mind, crushing their expectations of receiving a solution.
7. Creditors need to learn to be fair and stop beating old stories of how the debtor got themselves into a debt-crisis, because that is beating an old story, they should focus on making new stories that will put money into the bank of their organisations and secure everyone involved, including their organizations.
8. Expat creditor employees hardly ever think further than what they are supposed to and the core reason is they know that regardless of bad decisions or bad attitudes taken against any debtor, there is almost ever minimal proof of their actions and then finally, their salary will be credited to their account on a set date. The turning point for them is one day that there is no longer a salary and then they would wish they acted differently as you get what you dish out. So one day there will be nobody to receive them with their problems as they wish.  In life when you don’t give from your heart when you can, then you never get as this is the Law of Reciprocation.
9. If a debtor approaches a creditor and is already in default then how is it possible for the creditor to demand a ridiculous down-payment, which in some cases is almost the equivalent of the debtor’s salary and if they cannot make that payment, then legal action is the next move the debtor is advised. So how it is possible for debtor’s to remain committed?
10. The famous last words of expat creditor employees these days is ‘it is a new policy’ however, if it was a generalized blanket policy, then how is it that some organisations are willingly assisting debtors and others not? I doubt very much it is a general policy else everyone in that sector would conform. So expat creditor employees must realise that debtors or other individuals are able to decipher this logic at the drop of a hat and, therefore, some of the practices administered due to personal ego’s are unfair, should be officially addressed and the action immediately rectified.

If you are wondering why I am referring to ‘expat creditor employees’ then it’s because these are the employees who are dishing out this kind of treatment to debtors and from my experience it’s uncalled for, as they are dealing with humans, not some sub-standard individual they can push around as they wish. A client remains a client, regardless of default status as it is our job as employees to respect the ‘Code of Conduct’ that is applicable. But I am astonished at the attitudes many of the times but thankfully it is a handful of individuals at this time as it appears that much is positively changing.  Some creditors have finally understood the significance of true empathy.

The real problem is whose lodging official complaints to create an awareness of these problems?

Certainly not the debtor as they are victimized and made to feel guilty of their situation, so they opt to withdraw and retract into their shells when they cannot meet demanded creditor expectations.

The assumption that a debtor assumes a creditor is a charity is delusional, because if it was the case the debtor would not bother to approach the creditor for leniency and a more affordable payment plan. Debtors may be living in fear but certainly they have not lost their pride if they have taken ownership and responsibility to request leniency, as they want to repay their debt.

So when you, the expat creditor employee possess no form of human empathy then just step aside and place yourself in the debtor’s shoes even if you have no affinity to debt, just imagine for a minute that you were in the same position and think about how you would feel if a creditor refused to even discuss your request, or try to meet your request to rectify your situation?

What would you do and how would you feel of someone continually bashing your emotions demanding ridiculous overdue payments that you just told them you cannot pay, but need a concrete solution to enable you to comfortably repay your liability?

This is still the practice today from some expat creditor employees and I just wonder when those ego’s will be inflated and we can resume to normality, because there is nothing more pleasing than an understanding creditor who resonates with the debtor’s situation and because they can help, they do and many times they go the extra mile for which the debtor is thankful.

Creditors, the world shifted its paradigm in end-2008, people’s attitudes changed, business methodologies and practices changed, including those very bad creditor attitudes debtors have faced for decades. The outcome was remedial, problem-solving, transformation and growth of individuals, companies and organizations.

So the question is when are those expat creditor employees who are simply being difficult, going to change their attitudes, lose their ego of self-importance and truly serve humanity and the country they live to continue fostering well-being and success?

Time to think!

[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.]

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