The problem with bank loans and its solution

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In a difficult economic situation in a country characterized by low purchasing power and low wages, people are forced to purchase goods and services on credit. Still, is it possible today to buy a long-awaited housing without borrowing money from the bank? The answer to this question is obvious.

Credit: to take or not to take?

At the same time, analysts note that most potential borrowers initially intend to properly fulfill their loan obligations: to return the principal amount of the debt and accrued interest to the banking institution. However, after signing the contract, a person often faces the most unforeseen life situations: he loses his ability to work, he is fired from his job, he loses his sources of income … Naturally, in such conditions, the debtor cannot return the money to the financial structure, and he has a problem with loans.

The worst thing is that it can grow like a snowball. The amount of pen alties and fines is growing every day, and in the end, the borrower may stay,what is called, "no pants." And the reaction of the bank in this case is easy to predict. He is not interested in the problem with loans that the debtor has, he wants to get his money back, so he attracts a collection agency as an assistant, which sometimes does not disdain any means: both legal and illegal, to “knock out” the debt from the borrower. Yes, his position is not the most enviable. Are there solutions when a credit problem is on the horizon? Let's take a closer look at this issue.

What to do

So what to do if you are in debt? The main thing is not to panic and keep a sober mind. Try to communicate as closely as possible with employees of the credit institution and explain to them the essence of your financial difficulties.

It is possible that they will be able to meet you halfway if you tell in as much detail as possible about why you are having problems with paying off the loan. Realistically assess your own degree of solvency and announce to the bank employees the approximate terms of its repayment if the issue of debt restructuring is resolved positively. Remember that if you prove that you do not intend to evade your obligations and want to return the money to the bank, then the chances of renegotiating the terms of the loan agreement will be quite high.

Expert Help

If your independent steps to resolve the problem with the payment of the loan were not successful, then you should seek the advice of a professional. In this case, you need an experienced lawyer. It will not only work for youthe correct tactics of behavior with employees of a banking institution, but also protect you from illegal actions on the part of collectors.

Please note that the problem with loans should be solved by a specialized specialist who has previously successfully de alt with similar cases. Do not be lazy and ask him to confirm this fact.

As practice shows, there are several ways to solve problems with repayment of loans. Let's take a look at each one.

Applying a new loan

Currently, a huge number of intermediaries have appeared in the banking market. Brokers left and right offer their solution to problems with loans. Which? You take out a new loan from them to pay off the old one. This measure is also called loan refinancing. Well, this is not to say that this option is optimal for all borrowers and yet it should not be discounted. The thing is that, using this method, you can “kill two birds with one stone” at the same time if you borrow money from the same banking institution.

Firstly, if you make a new loan, the next payment will be deferred for 30 days. Secondly, if the new loan is long-term, then the amount of the monthly "tranche" is reduced. However, you can borrow money from another lending institution. The main thing is different: if you belong to the category of persistent non-payers, and you have delays in repaying the debt, thennew credit is unlikely to be expected. Information about the quality of each credit history is contained in a special register of customers, and the bank can review them at any time. But if something did not suit the employees in it, then you can use the services of an intermediary with an impeccable reputation, who, for a fee, will agree to issue a new loan for you.

Debt restructuring

Don't know how to solve your credit problems? There is another common way. The one who uses it receives certain privileges from the bank: adjustment of the monthly installment, debt repayment periods, partial write-off of the loan amount. To be able to receive the above concessions, you must visit a banking institution, inform employees about financial difficulties and write a corresponding application to the management of the credit institution.

As practice shows, banking structures in some cases positively resolve the issue of writing off fines, pen alties and even partially “forgive” the principal amount of the debt.

Insurance

Modern realities are such that almost all credit institutions prefer to insure themselves against financial risks. However, not all borrowers carefully read the text of the loan insurance agreement. And this document contains very important points, namely, in which cases the insurer will pay the loan instead of the debtor. As a rule, these are force majeure circumstances: disability, dismissal from work, lethalExodus. But even in these cases, the bank will make claims not to the insurance company, but to the borrower. If the agreed case has occurred, the latter himself must contact the insurer, provide him with a certain package of documents, and only after that he will fulfill the obligations of the debtor. Moreover, you must have written evidence that an insured event has occurred. It should also be remembered that in some situations, insurance companies deliberately evade their obligations. Again there are problems with credit. What to do? First you need to defend your rights in the insurance company.

That is why it is possible that the borrower will be forced to spend time on litigation with the insurer, and here you should seek qualified help.

More things to remember

So you're having trouble paying off your loan. What to do in this situation? The main thing is not to take a wait-and-see attitude, hoping that the matter will be resolved by itself. We need to be very active. All appeals to a credit institution must be made in writing. Keep in mind that the faster you start to "move", the more you can reduce the amount of pen alties and fines. Do not forget that the lion's share of loan agreements for consumer needs provides for simply "enslaving" sanctions, despite the fact that, according to the law, their amount should not exceed reasonable limits and should not be several times larger than the amount of the principal debt.

If at some stage of "communication" with the bank you have difficulties, then you shouldimmediately seek help from a specialist. And here you need to take into account the fact that some lawyers will require an advance payment for their services, while others will ask for money after the result of the work is visible.

Home Loan

Today, many are forced to borrow money from the bank to buy a home. Well, the goal is good, but before choosing one or another mortgage lending program, carefully weigh the pros and cons. Soberly assess your financial potential, because monthly fees will need to be paid for many years. Otherwise, you are more likely to have a mortgage problem.

What to do

Remember that in case of delays under a loan agreement for the purchase of housing, the bank's position is very tough and principled.

Here he rarely makes concessions to the borrower, since we are talking about "big" money. If the debtor fails to make a payment on time for 2-3 months, then the bank, as a rule, uses a “trump card” - the right to sell the apartment that is pledged. Of course, he strongly disciplines the borrower. However, is there a way out for him?

It's ironic, but yes. If he has an impeccable credit history, then the management of a financial institution can make a positive decision on the issue of granting a deferment on the principal debt of up to 180 days. During this period, the debtor only repays interest, and then either compensates for missed payments or restructures the debt by extending the termmaking contributions. However, the question of whether or not to grant the right to restructuring is decided on an individual basis.

If the bank threatens to sue, but there is nothing to pay?

However, it also happens that the bank refuses to meet the needs of its debtor, notifying that it will start a lawsuit. For some, such a measure has a sobering effect, and they gradually begin to pay off their debts. However, such a tactic of behavior does not make sense, since the amount of fines for delay is growing daily, and by the time the case is considered by the court, the amounts sometimes reach enormous amounts. Therefore, experts do not advise paying off the debt in parts: the credit history has become far from ideal anyway, and the money will be thrown to the wind, since the next day the amount of debt will again acquire its previous value. You don't have to worry too much about litigation. On the contrary, it should finally put an end to your relationship with the bank. The court decision will establish the final amount of the debt, on which fines and pen alties will no longer be charged. And their size during the court session, on the contrary, can be reduced. The bailiffs, who are much more loyal than employees of collection agencies, will already fulfill the will of the court. And it is from this moment that measures can be taken in order to at least partially repay the debt. Moreover, if you take a passive position, then the bailiffs can seize your property. Thus, it is better to comply with the court decision by making payments little by little. And if you have the opportunity to fullypay off the bank, it is better not to ignore this option.