Regardless of whether we take credit or loans for evidence, there is always a risk that for various reasons will cease to pay off their debts. However, this is not the end of the world.
There are some ways to not get caught in the loop of growing debt.
Most often the crisis situation is very close to us when we are interested in loans without big, being aware that our financial situation is already bad. Not only in bank branches, but also in parabanks, we can easily recompense. Then we can be anxious to watch the growing receivables, far exceeding our monthly revenues. However, when you find yourself in this situation, remember that there are many more people besides you.
The first reaction that comes to mind is to escape from responsibility and wait until the problem solves itself. Unfortunately, this is a very bad decision. Before you make this mistake, it’s better to mute your emotions and think better about your expenses, as well as cool revenues. It may turn out that every month we waste money on unnecessary things. A lot of people spend money for consumption purposes, things that can be quietly reduced. In addition to the fact that we spend money on fleeting things, such as going to the cinema, restaurants or other entertainment, we also have a tendency to collect unnecessary things. Maybe making a thorough cleaning will help us find items that we have not used for a long time and we can sell them to someone else. Thanks to this we will gain an additional source of cash.
Although many clients think stereotypically about bank branches, it is worth going to your bank as soon as possible. Banking also depends on the debt being repaid to the end. Your adviser will most likely have several ready-made solutions that you can use. The most frequently proposed options in this situation include:
- Credit holidays – used especially for larger loans, the customer may suspend the repayment of the loan once a year, for example, for a month
- Deferment of payment
- Reducing the amount of installments and extending the loan repayment period
- Proposing a consolidation loan – this option works well if the borrower has at least several loans taken from various bank branches
Lack of contact with the bank branch where we have a loan and not paying the installment on time, unfortunately, we are facing the risk of interest penalties being charged. But this is not all the costs that we will have to incur due to our delay in paying the incurred debt. In addition, we are waiting for notifications in the form of text messages, telephone calls, reminders and even visits of bank employees. Unfortunately, the costs of such “additional services” are covered by the customer. So it is added to the cost of the loan. The last stage of the bank’s struggle for its money is to take the case to court. Then the bank employee and the bailiff will not come to our door.
It may indeed turn out that the above solutions are no longer helpful. Our financial situation may be so bad that we will not be able to collect money even for a lower installment. If the bank branch goes to sell debt to a debt collection company, the matter may seem tragic to us. But here, it is worth keeping calm. The debt collector is forced to collect the debt in such a way that it is suitable for us. With the debt collector, you can negotiate the method of spreading installments, and even redeeming penal interest. Hiding your head in the sand even in a hopeless situation will not help you. It is much better to negotiate loan repayment terms from the very beginning until the end. After all, we are all human. Also employees of bank branches as well as debt collectors in the debt collection company.