Take a moment for others

In my blog, I rarely bring in my day to day job into the discussion.  Today is an exception.  My primary career is that I manage a contact center in the student loan industry.  Whenever I tell people this, the initial response that I receive is, "Oh, you're one of those people".  My response invariably is, "No, I am one of those individuals with the white hats that can provide people with the best options for their situation." 

While my career has been within several verticals within the debt collections and customer service industries, my current path is one that provides guidance and solutions for individuals who are frustrated by their situation.  The team responsible for providing counseling to the consumer are all focused on one goal, and that is to get it right the first time we speak with an individual so that the consumer is able to make better informed decisions through resources and feedback we are able to provide to them.  We don't collect money and we don't set up payment arrangements.  Simply put, we explore options and solutions with consumers to allow them to successfully manage repayment of their federal student loan debt.

It is amazing how much information is available for consumers that people do not take advantage of.  There are times that bad things happen to good people.  Take for instance the situation of an individual who has become 60 days past due on their student loan pay.  The first thing that needs to be understood is how a person became past due (besides the obvious of not making a payment).  Not making the payment is the result, but getting down to basics and understanding if their were triggering events which caused payments not to be made timely.  In this example, the person had their hours cut 3 months ago, which forced them to make decisions about how their money needed to be spent.  The quick answer would be to choose a discretionary hardship forbearance on this debt.  However, what the consumer may not understand is that this is going to cause capitalized interest to occur as a result of the interest accrual since their last payment was made.  Due to interest capitalization, their principal balance will increase, resulting in a higher monthly payment amount.  By gaining an understanding of their situation, it may be learned that the spouse lost their job during this period for a family of 5.  Again, bad things happen to good people and their are better options than just digging a deeper hole.

As we enter the holiday season, it is important, that we all recognize that bad things happen to good people.  There are some out there that have been through situations that are completely outside of their control, while there are situations that people have made some poor financial decisions.  Most of us have been their at some point in our lives.  These situations cause stress for individuals and their families.  Typically, without intervention, bad decisions lead to worse decisions.

While not everyone will have an opportunity to positively impact a persons financial situation in the way that we are able to in the contact center I'm responsible for, we all have the ability to provide fresh perspective to those around us.  Take the time to be a positive moment to a complete stranger.  Ask a friend or a family member how things are going and if they have a plan.  Bottom line, invest time in others not just during the holiday season, but all the time.

If you are in a bad situation, know there are a myriad of non-profit resources available for you to talk about your situation.  Also, know that bad situations will lead to sacrifice.  Things you were able to do, you may need to give up until things are back in balance.  There is always a light at the end of the tunnel, and usually it is not a train coming at you.  Take a step back, breath, re-evaluate, and move forward. 

Situations can change, but only if there is a catalyst for them, and it all starts with us as individuals. 

Have a very Happy Thanksgiving and Hanukkah over the course of the next week and remember to have a positive impact on someone this week.

Be An Informed Consumer

Life is full of curve balls.

No, this is not a baseball metaphor for once, just a statement of truth.  All good intentions, at times have a way of not working out the way we plan for them to.  Does that mean we are making bad choices, or that we lack the experience to make the most informed choice?

I have been in the call center industry 22 years.  During that time, I and my teams have spoken with thousands of people who have run into to tough times.  When a person gets into this situation, are they asking the right questions of the company they are speaking with?  Even a better question, is the company asking the consumer the right questions for the best solution for the consumer?

At the end of the day, all of us run into bad situations.  Situations that we didn't plan on.  Situations that may or may not be of our own making.  When consumers turn to creditors or service providers for assistance, it is imperative that communication be a two way street.  Consumers must be open and honest about their situation, and creditors/servicers must be fair and honest with the consumer.  Often times, this two way communication does not occur, and as a result, the consumer is the one left frustrated and in a deeper situation than they were before.

I have spent much of my career in the debt collection arena, and what I have found is that regardless of the specific industry, auto finance, medical, mortgage, student loans, credit cards, there are always alternatives to defaulting.  The importance of consumers communicating with their creditors, will almost always result in arrangements being made.  As a consumer, remember the following.

• Don't dodge creditor calls. 
• Be specific about your situation.
• Let the creditor know what you can do, versus what you can not do.
• Understand any payment postponement options that are discussed and what you can do to mitigate standard monthly payment increases.
• Be open to a two way conversation, and if the representative is not able to assist you, it is OK to ask for a supervisor or manager.
• Don't expect that the creditor is going to do everything you ask.  Most industries are heavily regulated and must be consistent in the application of the rules.
• Don't become upset at the messenger.  Often times the person representing the creditor is staying consistent with their policies.
• At the end of the day, creditors and service providers WANT to assist their customers.

In my career, I have seen many situations where good people are going through a rough period.  As a creditor, I knew that if I was able to customer satisfaction one interaction at a time, I was creating a fan of the organization for life.

Creditors can not assist consumers who don't want to help themselves.  Communicate.  Communicate.  Communicate.  It is the best way to make improve a seemingly helpless situation.

Have a great week!!