When debts start to overcome, it is important to act immediately and resolve the situation. Doing a “dead beetle” will only delay the inevitable. What can help you?
Contact your lender
Can’t you manage to pay the installment? Rush to your subsidiary immediately and inform about it. Feel free in advance. You will try to solve the problem and you can agree on a workaround. It doesn’t have to be a disaster right now.
Several possible solutions
Your lender will probably offer several solutions. He is interested in getting his money back, despite the fact that he has to abide by the Banking Code – and he is obliged to deal with the situation.
What is the solution? This may be a change in the amount of repayments, extension of maturity and postponement of repayment. And what if the debt has already increased? The repayment schedule could save you, not only in case of personal bankruptcy. It goes without it.
What is the payment schedule?
The repayment schedule is a part of mortgage and loan contracts. You have to come up with the proposal, not the company. It is mainly offered when you cannot manage to pay off your debts at the same time. The company then decides whether to approve your request for a repayment scheme. You will also need some proof that you can handle it.
First, the debt recognition contract, along with the repayment agreement. For the company to allow you to repay, you pay a fee, in the order of hundred crowns, but it is individual.
Merge loans into one
Another way to get loans under control, if you have more, is to consolidate them. What does it mean? Simply put, all loans are merged into one. What is it good for? You will stop getting lost in the loans and you will have better conditions. You must apply for consolidation and the bank will review your application. Many factors play a role here and one of them is the total amount of all loans. Banks tend to have no ceiling.
Rescue from execution
What is consolidation about? The bank will repay the debts for you and create a new loan. New terms are negotiated, consolidation can save you from execution, you only solve everything with one lender, get lower interest and lower repayments. However, it is logical that the repayment period will be extended by consolidation. There is even the possibility of borrowing more money and increasing the loan as needed.
Consolidation will help stabilize your family budget and allow you to function normally even when you have loans. But find out its conditions well, sometimes the “hook” is in high insolvency insurance, sometimes you expect a high account maintenance fee.