Sleep Spells for your Debts

You are feeling sleepy…Very sleepy.

Do you know what I love the most about the “Sleep Spell”. It’s the moment after the spell takes effect on a group of thugs trying to kill your party. You know the moment; when most of the assholes have passed out only to leave one or two thugs standing with the look of bewilderment on their faces. It’s in that moment when these imaginary douche-bags realize they’re gonna die!

I hear this a lot, “I have so many bills to pay that I can’t ever get ahead on them.” What if you could put some of your bills to sleep so you can concentrate all your efforts on killing one or two of them. Think of it as your Sleep Spell for Debts.

The spell is pretty easy to achieve and takes a bit of your time. Hopefully you have heard of the terms “Forbearance” and “Deferment” Both of these terms are the trigger words for your spells. In boring “technical finance talk”, a forbearance is an action to abstain from enforcing a right to collect. In short, you’re asking your creditor permission to skip a certain amount of payments. Deferments are pretty much the same thing and your creditor could use one or both of those terms.

The process is simple. You call your creditor, tell them that you’re having trouble keeping up with your bills and would like to know if they offer a Forbearance/Deferment plan. They, in turn, will tell you yes or go take a hike (more on this in a bit).  Generally, debts like your school loans will have no problem “hooking a brother or sister up”, while car loans and mortgages won’t. Again, it depends on your lender.

How will this help you if you still have to pay back the loan? Well, just like the Sleep Spell in an RPG, putting some debts to sleep for several rounds (months) will allow you to take that money and put it towards another loan.

Lets try this in Story Mode. One night you are walking down a street with all your weapons (weapons = the money you make). You take this one street once a month (the time you pay your bills) and without fail five thugs jump you (thugs = debts you owe). Before they have a chance to attack you, this time you came prepared and cast a sleep spell (sleep spell = calling all 5 debtors and asking for a Forbearance). Three of the thugs instantly hit the ground sound asleep (asleep = forbearance accepted). You step over the sleeping thugs, pull out your beat stick and pommel the hell out of the remaining two thugs (the new beating = the money you diverted from debts in forbearance to active debts).

This tactic is extremely effective, especially if you can dispatch one or two debts. Once you get the OK from your creditor for a forbearance/deferment (usually requires signing papers and such) you take the money that would normally go to paying those bills and apply them to the other remaining debts.

You might ask, “Something this easy can’t be really, really, real … can it?” It’s definitely real and it’s that easy, but there can be some draw backs. Earlier on I said your lenders might tell you to take a hike. Well, it’s possible your lenders won’t offer you a Forbearance/Deferment. If they deny you the action but offer it to other customers, ask why they denied you. If you were delinquent on payments in the past , for instance, they might not be as forthcoming. In cases like that just ask for a manager and sweet talk the manager (a little creative embellishments won’t hurt you either, “You see my hamster died and my job hours were reduce. Life is just really tough right now Mr. Manager”). That being said, if your lender offers a Forbearance/Deferment plan then odds are they will work with you. Remember, they want your money. In the off chance that your creditor won’t work with you, ask your them what you need to do to be eligible for Forbearance/Deferment.

Another draw back is that interest will still accrue in Forbearance/Deferment. The thing that keeps your interest in check is your timely monthly payments. When your debts wake up from the sleep spell, they will be a little more ticked off then usual, if you get my drift. However, the amount of money you will have saved in the long run coupled with the new amount of hitting power your monthly damage will have on the remaining debts will out weight this drawback!

There is one other draw back. Some companies will allow you to go on Forbearance/Deferment but will try to ding your credit score for doing so (this usually happens more often with debt modification plans, think transmutation from dragon to sheep, then with a Forbearance) Here is the catch, they won’t tell you that your credit will be hit for taking such an action. Think of it as a last ditch ball-tap by the thugs being affected by your sleep spell.

You need to ask the creditor if they will ding your credit. If they do, you can probably negotiate your way out of it. If you can’t talk your way out of the Credit hit then you will have to assess if the hit is worth it. If you have a low credit score (Very High Risk, or close to it) then it might be worth it. Again this is something you will have to think about for yourself. Also, make sure you aren’t being ball-tapped by more then on lender. It definitely won’t be worth the hassle if your credit score tanks (unless your credit score is already super low).

One a final thought, make sure that you get everything in writing. Nothing is worse then stepping over a sleeping thug, prematurely, only to find that the thug is awake and ready to kick your ass.

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