Losing your job, sickness, less income, sudden spending – all this can make your life more difficult and the family budget. How do you not find yourself in debt hell? Put down the installment or arrange the payment schedule.
Talk to the bank
If you’re having trouble paying, don’t wait for the first reminders. It wants an active approach. The first and crucial tip is: inform the bank immediately. Try to solve the situation best when you are in trouble. You will avoid interest on late payments and reminders.
Before you visit the bank, prepare the documents to prove your financial distress in advance. For example:
- sickness ticket
- confirmation from the employment office
- confirmation of income reduction from the employer.
A helpful attitude is not common place
Each case is handled individually by banks. In general, they have an understanding for people in need. Even in the interest of the bank itself, it is important that clients regularly repay and not get into an uncertain execution.
Obviously, if you lose your job or have health problems, they will be more open than notorious defaulters. Those who have been in trouble because of having bought an exotic debt holiday, for example, must expect a more vigorous approach by bankers.
There are several ways to deal with an outstanding loan:
- postponement of payments by several months
- Reduction of installments and creation of a new payment schedule
- consolidation of loans.
How to postpone or reduce the installment
The entitlement to change the installment schedule is not automatic. Most lenders will postpone the repayments or change their amounts on an individual basis. In particular, they assess the amount of credit, client history or family background. However, there are also exceptions that are directly anchored in the contract.
You may not be delayed in repaying the loan when applying for a change in the repayment schedule. Also, remember that you will repay the loan interest throughout the grace period.
The lifebuoy is called loan consolidation
Do you pay several loans at a time and will the current installments get too high? Then the loan consolidation could save you. You get one big umbrella loan to pay off all your existing debts. Usually, interest is reduced and monthly payments fall.
On the other hand, the repayment period will increase and you may overpay your credit. Attention, banks will not allow consolidation of unrecoverable debtors who have a registry entry.