How to talk your Friends and Family into Debt Consolidation
In a previous blog post, we talked about suggesting debt consolidation to a friend or relative that you have cosigned for is a good way to help them get into a position where they can repay their debt. As an added bonus, we mentioned that debt consolidation would replace the current loan that you cosigned for with another loan that is not under your name. After this, many people wanted to know how they could convince their friends or family members how to take out a debt consolidation loan. If you’re wondering the same thing, try this guide.
Start by waiting until you’re calm and alone with the person to start the conversation. Having other people around will usually only embarrass them and make them get defensive about the loan; all you’re probably get is a mumbled promise to take care of it. In most cases, if a person knew how to handle the problem, they would have done so already. That means that if they could pay the loan, they would already be making payments. Since they’re not, it’s not going to serve much purpose to get angry with them, yell, or insist that they “figure it out”.
Instead, tell them that you know they’re having problems paying their debt, and that while you know it’s an uncomfortable subject, the facet that you have cosigned on the debt means that your credit is being affected too. Then tell them that you’ve found a solution for them. Talk to them about the advantages of debt consolidation: they’ll be able to have lower monthly payments, they can take care of their other debt issues, and they’ll have a chance to meet with a debt counselor for free to develop a plan to get their finances fixed for good. Remember that while getting the loan out of your name is a huge advantage for you, you don’t want to make it sound as if this is your only motivation for suggesting debt consolidation.
Finally, help them to get the application process for a debt consolidation loan started. This will not only help them take the first step, but it will also give you the peace of mind that the y are taking steps to fix the problem.