When arranging a loan at a bank, each of us tries to really evaluate our ability to repay it on time. However, often due to unforeseen situations the solvency of the borrower is sharply reduced and a delay in regular payments is formed. What to do if you have no money to pay and the amount of delinquency increases quickly? Should you forget about the debt or take some measures? In this article we will try to understand these issues and find out what is Debt Relief.
What to do if you can’t pay your credit debts on time?
Missing regular monthly payments, people mistakenly believe that the bank has forgotten about them. Actually, they’re not. Even if you don’t pay for several months and the employees of the financial institution don’t call you and send you letters, it doesn’t mean that you have been “forgotten” with your debt. So, what should not be done if you cannot pay the loan on time.
- Hide the financial difficulties that have arisen. If your financial situation has seriously deteriorated and you are not able to repay the loan on time, then in no case should you hide it from the employees of the financial institution. Today, banks and financial institutions have special programs for restructuring and refinancing of loans, which you can use to timely repay the loan on easier and more favorable terms. In addition, if necessary, you can also take a “vacation” for several months. In this case, the debt will be fixed for a certain amount and no interest will be charged on the loan. If you contact a financial institution in time and tell them about the financial difficulties, the chances to solve the problem will increase significantly.
- Ignore lender’s warnings. When the delay is more than three months, the bank specialists start calling the borrower or sending him letters. Such attempts by the bank to get in touch with you should not be ignored. It is better to immediately contact the nearest branch of the financial institution to solve the problem peacefully. Otherwise, in just a couple of months the bank may resort to stricter measures up to the lawsuit.
- Refuse to pay the debt. Even if you are unable to make full monthly payments at this time, try to close them at least partially. In such a situation, it is very important to show the financial institution that you are not a fraudster and that you are not refusing to pay your debt. Paying at least 25-30 percent of the mandatory payment each month during the restructuring decision, you not only show the bank that you are a conscientious client, but also gradually reduce the amount of debt. In order not to accumulate credit debts specialists recommend to initially defer funds at least for two or three monthly payments. Thus, in case of financial difficulties you will be sure that no problems will arise with the bank.
- Put your hands down. If it is impossible to make systematic payments on the loan, do not give up and immediately start looking for options to solve the problem. Try to really assess the financial possibilities and find an additional source of income to pay the loan. If necessary, try to sell the property borrowed, or borrow the necessary amount from friends. The debt will have to be paid back anyway, and the sooner you take action, the lower the amount will be before the loan is fully repaid.
Additionally, you can find the best debt management service to help you solve your loan problems. These companies are willing to take on the task of helping you solve the problem. They will use the law to do this, it will help them find legal ways to make your situation easier.