In a world full of crises and chaos, everyone wants to be worthy. And if it wasn’t possible to buy what was necessary before, it was the case with loans in almost every person.
But buying pleasure does not always last long, because the euphoria quickly fades when the deadline for paying the debts comes. All is well if there is a stable income that the borrower was counting on, but if there is no way to pay loans? What needs to be done in this situation? This is described in this article.
The reasons for the bankruptcy of borrowers
Most of the reasons for the lack of money can be – from job loss to serious illness. Of course, many citizens who make another purchase on credit do not think of evil, but hope for the best.
The next crisis, however, can bring all the plans of the once good-faith loan payer to a standstill, so today he is faced with the difficult question: “There is no way to pay loans – what to do?” to achieve payment or even write off a debt, depending on the reason for the lack of money.
First steps of the borrower when there is no money available
The main thing to do first when financial difficulties – it is urgent to go to the bank to report this problem. Many insolvent borrowers are hoping for a lucky chance or some luck that will save them from debt.
Indeed, there is no such magic that the debt is simply paid off, or it is written by itself. The more time passes, the higher the penalty for late payments. Therefore, the first step is to contact your bank where the loan was issued.
Next, you will have to make a statement about the impossibility of making a loan, as the bank manager can forget the application until the evening after an oral hearing. You should, therefore, inform the creditor in writing of your financial difficulties and your desire for debt rescheduling.
Debt restructuring – what is it?
Many who have been faced with getting loans belong to this concept, but few know what it is. Debt restructuring is a procedure to check the borrower’s solvency in order to reduce the burden of loan payments.
Debt rescheduling implies a measure aimed at changing the terms of a loan agreement for a borrower in order to maintain its ability to repay debt.
The restructuring of foreign currency loans is usually carried out by the state in crisis situations when the majority of citizens applying for foreign currency loans suffer from the debt burden.
How do you achieve credit restructuring?
Headed to the bank to meet the borrower. You must contact your manager as soon as possible with a written statement. The application should state why the borrower cannot repay the loan debt on the contractual terms.
You should also indicate the amount that can be repaid and you should write a period in which the financial situation can change in a positive direction. You shouldn’t write, “I lost my job, I have nothing to pay a loan.” The credit manager will therefore not respond to the request and may consider waiving his obligations and the borrower’s bankruptcy.
In order to avoid controversial issues, it is, therefore, better to write: “Due to unforeseen financial difficulties at work, it is temporarily not possible to pay on loans.” The lender is asked what to do next.
It is better not to beautify the situation, but to provide reliable information. Otherwise, the bank can review the data provided by the borrower. If they are not in line with reality, they will refuse to restructure the loan.
As mentioned above, currency restructuring loans are mostly granted with state aid, and it is important that the time to apply for a contract is not missed. Sometimes it is too late, if you do not go to the bank in time, you will have to repay the high interest on foreign currency loans in full.
Results of loan debt restructuring
After examining the borrower’s application the bank The organization must make a decision. Banks usually meet their customers and review the loan agreement. This enables the insolvent borrower to defer payment and the loan cannot pay for some time. As a rule, this period is up to three months and must then also follow the mandatory payments in small amounts.
Credit restructuring can only be a short time to resolve payer’s financial difficulties. Sooner or later, the entire debt of a cash loan will have to be paid, plus additional interest, as the time to repay the debt has increased.
This measure is extreme in order not to achieve a credit default and not to recognize the borrower as a bankruptcy. So if there is a way to repay the loan on time, it is better to turn to guarantors than to bring the restructuring of the loan debt into the matter.
When can I not pay the loan?
Many people mistakenly believe that in the event of problems, they can easily abandon the mandatory payments for the loan. Even pregnancy or a decree does not remove these obligations. Even an illness can sometimes lead to failure to pay debts because in such a situation the insurer undertakes to repay the loan payments.
However, the insurance company does not always assume these obligations. Therefore, the bank can meet the needs of a client with serious health problems. In this case, the lender can defer payment for a period of time while the borrower is calm about his health.
Another option if many loans are not paid can be refinanced. That is, the borrower has to issue a new loan to repay the old one. However, this system does not always work because every bank checks the creditworthiness of its customers before issuing a cash advance. If the lender sees several more outstanding loans, he can refuse to do so.