There are times in our lives that we want to obtain things but we don’t have cash for it. Some people choose to save for it while others acquire it through the loan process. There are also those who choose to borrow money from a creditor company.
What Is A Creditor Company?
A creditor company provides services, goods, and monetary loans to a debtor. Creditors provide money or services without demanding payment immediately. This is the sole reason why many people tend to lending companies or creditors especially in times of emergency.
Big companies are not only capable of being a creditor. There are also some that can be a creditor like:
- Financial institution. It can be a credit union or bank that extends installment loans, personal or student loans.
- Credit card issuer.
- Mortgage lender.
- Auto dealer.
- Friend or family member.
Debtor And Creditor Agreement
Have you ever experienced borrowing money from a creditor company? Or maybe you have your credit card to pay. I am sure that you are familiar with the so-called debt settlement agreement. This is a written agreement between debtor and creditor that states their inkasso regler (debt collection rules) and outstanding debt due.
Before issuing a loan to a debtor, the creditor must ensure that he is familiar with the company inkasso regler (debt collection rules) to avoid any payments problem. Debtors must know their due date and any possible penalty if they miss it.
It is important that the debtor acknowledge the rules before issuing the money, goods, or services offered. The debt settlement agreement is an assurance for both debtor and creditor. Next time you decide to make a credit, sign this agreement.
Advantages of Credit Company
For now, we can say that credit companies are popular around the globe? Why? Because not all people are rich and can provide money for their likes. For example, a minimum earner might take years just to save money for his dream car. Through the aid of some credit company, they can loan for it and pay monthly according to the plan they signed.
There are also instances that we unexpectedly need emergency funds like hospitalization. For common earners, the loan is their solution. Not all individuals do always have emergency funds, especially after this pandemic happen. Many individuals, spend their savings just to survive the economic crisis. The are just starting to recover.
Is it Wrong To Owe Money?
The answer is definitely NO. There is a saying ‘no man is an island, this means as long as we live there comes a time that we really need assistance from others. One thing is that there are over 689 million people are living in poverty around the world, so many are in need of loans to tackle their needs.
If ever you are in such a situation, don’t hesitate to go for a lending company as long as it is legal and you are capable to pay what you have agreed.