All dreams must be carried out. Your dream was to buy a TV, refrigerator, kitchen set? You have long chosen what suits you most. They saved money for years and finally decided to borrow the missing amount from the bank to buy this miracle of modern technology. Dream come true. But over time, the joy of acquiring a new thing was eclipsed by life’s troubles and you realized that you could not repay the next loan amount. What threatens your insolvency and what will happen if you do not pay the loan?
Timely failure to pay part of the money on the loan leads to the fact that the amount of all the funds that you owe on the loan, added the fee for late payment. And the bank does not understand why the amount stipulated in the contract was not paid in time. Perhaps this is an elementary forgetfulness: the calendar did not look, it ran, etc. Perhaps you delayed hard earned wages. Perhaps you are sick or have gone on a business trip.
The amount of interest becomes significantly more, the more you have delayed your payment.
Surely you’ve heard of this. Often making out any documents or payments in a bank, you heard the chilling voice of a bank employee in relation to a client: “You are denied a loan!”. Why it happens?
Basically, consumer loans are made out, as they say “without departing from the box office” in large shopping centers, electronics stores. The so-called express loans are available in almost every network appliance store. The decision to grant credit is made by the bank from 15 minutes to an hour. It is not always possible to fully verify the client’s solvency. And if a loan is received, but not systematically repaid, except for a penalty, the client is entered into the “black list”. And this suggests that a person has a bad credit history and may be refused in the future when applying for a new loan.
Psychological impact of the bank
Sometimes the accrual of fines and SMS informing does not lead to the fact that a person will hasten to pay off all debts and obligations to the bank. Then the bank acts differently. They have a department for working with problem clients who independently check your solvency, collect additional information about you, connect your guarantors to cooperation. The bank goes to your employers.
Often, a few calls to your home, on a mobile, a conversation with the director of the company where you work, lead to the fact that the funds necessary to repay the next loan amount are still there. If the situation is complicated, then the employer and the bank can agree on the transfer of part of your salary to repay the loan.
Surely you have heard about collection companies that are very successful in financial services and help banks in solving problems with malicious debtors.
What if not money to pay a loan?
But problems can be untied in another way. It is not necessary to wait for the complete lack of funds and to walk with a headache and waiting when “the thunder breaks out”. Solving the problem with the bank.
Sometimes clients try to trick themselves. Take a new loan from another bank to repay the previous one. But, as a rule, only time gains, and they drive themselves into debt bondage. After all, credit conditions in another bank are much tougher, as they are shifted in time frames.
1. The most correct way is to contact the bank and explain the reasons why the next part of the debt cannot be paid. After weighing all the conditions, the bank enters your situation and can offer “credit holidays” (a period of time when you repay only interest and do not repay part of the loan).
To provide a loan vacation, the bank estimates the length of time during which you can stand up and continue your obligations to it.
If you are in the hospital, a copy of the statement will allow you to determine when to expect the next repayment. If you fall under the reduction and lost your job, the bank will take into account whether you have a university degree and how much your profession is required on the labor market.
The bank is interested in your paying off your loan. He can provide not only “credit holidays”, but also to revise the conditions of lending. Restructuring of the loan is beneficial to both the bank and the client. Both the loan interest and the time frame are revised. The loan period can be extended, and therefore the amount of mandatory monthly payments will decrease.
2. The decision in difficult life situations is always purely individual and can lead to a complete revision of the contract. There are difficult cases in which a simple solution would be to withdraw the loan item and, having sold it, return the money. But if a loan was taken for the purchase of household appliances (consumer credit), then it is difficult to realize the subject of pledge. It all depends on the life of the equipment, performance technology, technical characteristics. The hardest thing with electronics, which literally a month out of date. The longer the life of the laptop, computer, digital cameras, the less they are listed on the market. After all, the electronics market is developing by leaps and bounds. The amount received from the sale of an item often does not cover the balance of the debt.
3. The easiest way is when a loan was taken on the security of real estate. Apartment, house, even the car fully repay the loan when it is sold. Sometimes it is better to consult with experts and sell the pledged itself. In this case, part of the funds will go to repay the loan, and some can be used for yourself and your family. But this must be done on time, if you realize that there is no finance and there is nothing to repay the next amounts.
If you made out a loan on bail, then surely the bank demanded to take out insurance. Re-read the insurance contract carefully if the reason for non-payment of the loan is your illness. Perhaps this is an insurance case!
And most importantly: never be afraid to contact the bank. After all, it is much better to get a six-month “credit vacation” than a bad credit history for life.
We recommend reading the material on how to get out of the debt pit and possible ways to solve this problem. Successes!