There is no possibility to pay on loans, what to do? Debt restructuring by credit

In a world full of crises and chaos, everyone wants to live with dignity. And if before it was not possible to just go and buy the necessary thing, then with the advent of loans, it appeared in almost every person. But not always the joy of buying lasts a long time, as euphoria quickly passes, when it is time to pay debts. All is well, when there is a stable income, which the borrower expected, but if there is no possibility to pay on loans? What to do in this situation? This will be discussed in this article.

Reasons for insolvency of borrowers

The reasons for the lack of money can be very different - from losing a job to a serious illness. Of course, many citizens, when making a loan on a regular purchase, do not think about the bad, but hope for the best. However, another crisis can bring down all plans of the once conscientious credit payer so that today he faces a difficult question: "There is no possibility to pay on loans - what to do?" Do not despair, because there is always a way out. Especially, according to the law, you can get a deferred payment, or even write off the debt, depending on the reason for the lack of money.

The first steps of the borrower, if there is no money to pay a loan

The main thing that should be done first when there are financial difficulties is to go to the bank urgently to report this problem. Many insolvent borrowers are hoping for a lucky event or some luck that will save them from a debt hole. In fact, there is no such magic, according to which the debt will simply be repaid, or it will in itself be written off. The more time passes, the greater the penalty for late payment. Thus, the first step is to contact your bank where the loan was issued.

Next, you need to write a statement about the inability to pay a loan, since, having listened to the request orally, the bank manager may forget about her by the evening. Therefore, it is necessary to inform the creditor in writing about its financial difficulties and about the desire to restructure the debt.

Debt restructuring - what is it?

Many who have had to face a loan have heard about this concept, but few know what it is. Debt restructuring is a procedure for reviewing the borrower's solvency in order to reduce the burden of credit payments. Debt restructuring implies a measure aimed at changing the terms of the loan agreement for the borrower in order to maintain its ability to repay the debt.

The restructuring of foreign currency loans is most often carried out by the state in crisis situations, when the majority of citizens who have issued a loan in foreign currency suffers from a debt burden.

How to achieve a loan restructuring

In order for the bank to meet the borrower, he needs to contact his manager as soon as possible with a written application. The statement should indicate the reason why the borrower can not repay the loan in the terms established by the contract. It is also worth mentioning the amount of money that can be repaid, and it is necessary to write the timeframe during which the financial situation can change in a positive way. Do not write: "I lost my job, I can not pay a loan." So the credit manager will not respond to the request, moreover, he can consider this a waiver of his obligations and will achieve the bankruptcy of the borrower. Therefore, to avoid any controversial issues, it is better to write: "In connection with unforeseen financial difficulties at work, there is temporarily no opportunity to pay on loans." What to do next will prompt the lender. The situation is better not to embellish, but to give reliable information. Otherwise, the bank can verify the data provided by the borrower, and if they do not correspond to reality, then he will refuse to restructure the loan.

As it was said above, the restructuring of foreign currency loans is most often conducted with state aid and it is important not to waste time for submitting an application for consideration of the contract. Sometimes it's too late, if you do not turn in time to the bank, then high interest on foreign currency loans will have to be repaid in full.

Results of debt restructuring under the loan

After considering the application of the borrower, the banking organization must make some decision. Usually, banks meet their clients and revise the loan agreement. Thus, an insolvent borrower has the opportunity to defer payment and the loan can not be paid for a while. Usually this period is up to three months, and then mandatory payments must follow, even in a small amount.

The restructuring of the loan can only solve the financial difficulties of the lender for a short time. Sooner or later all the debt on the monetary loan will have to be paid, plus additional interest, because the time of debt repayment has increased. This measure is extreme in order not to reach the credit default and not recognize the borrower as bankrupt. Therefore, if it is possible to repay the loan on time, it is better even to turn to guarantors than to bring the matter to the restructuring of the loan debt.

When can I not pay the loan?

Many people mistakenly believe that in the event of problems, they will easily be able to refuse mandatory payments on the loan. Even pregnancy or access to the decree does not remove these obligations. Even a disease can sometimes not cause a non-payment of a debt, because in such a situation the insurer assumes obligations on repayment of loan payments. However, not always the insurance company assumes similar obligations, and therefore the bank can meet the client, who has serious health problems. In this case, the lender can offer a deferred payment for a certain period of time, while the borrower will calmly take care of his health.

Another option, when there are a lot of loans - there is nothing to pay, can become refinancing. That is, the borrower needs to issue a new loan in order to pay off the old one. But this scheme does not always work, because before issuing a loan, each bank studies the credit history of its customers. And if the creditor sees the existence of several more outstanding loans, then he can refuse.

There is no possibility to pay on loans - what to do?

What to do when the bank refuses to restructure the loan, and refinancing is not available due to multiple refusals by other banks. There is always a way out. Both co-borrowers and guarantors can come to the rescue in a difficult financial situation. Usually, when making a loan for a large purchase, the bank requires one or more guarantors to be provided, which will guarantee repayment of the debt and the solvency of the borrower. There is also another situation when the guarantor also can not repay the debt and he has no opportunity to pay on loans. What to do in this case? You can declare yourself bankrupt, but then in the future you will not be able to get a new loan. It turns out that there is a way out - you can sell the collateral and pay off the rest of the debt with these funds.

Borrower's rights

Both the bank and the borrower have their rights that can protect in a difficult financial situation. However, they must be known in advance and familiarized with them even before the signing of the loan agreement. Banks, wanting to get their money, sometimes resort to the help of collection agencies, which, in turn, begin to "beat" the debt out of the borrower in all possible ways, namely, worry him at night, turn to his relatives and friends and even are at the workplace An insolvent client. Thus, violating his rights. Even without having the ability to pay mandatory payments, the borrower has the right to complain to an organization specializing in such cases, in order to protect their reputation and the right to a quiet sleep.

Sometimes unscrupulous lenders specifically do not give an opportunity to repay a monthly payment to their client. For example, on the last day of debt repayment, the borrower is not allowed to enter the bank's office (the cashier does not work or for another reason), and then after a weekend or holidays, he gets a large interest on the forfeit. The borrower should know that he has the right to repay the next payment until the last day giving him that right, and the bank must accept this payment, even if the circumstances hinder it. This will be the problems of the bank.

Consequences of debt owed to the creditor

Sometimes you can hear bold statements: "I do not pay a loan a year! And nothing! "This really happens, but the consequences just have not yet touched such unscrupulous borrowers. Huge interest, spoiled credit history and, in the end, recognition of bankruptcy - all this can be in case of non-payment of mandatory credit payments.

In addition to the penalties, the banking organization that issued the loan has the right to take back the collateral as a penalty on the loan agreement. This is also one of the common ways to get your money back. Thus, an insolvent client who did not pay off credit on time, receives a note about the corrupted financial reputation at the Central Bureau of Credit Histories and is deprived of the right to receive new loans.

What not to do to the borrower in a crisis situation

The most important thing that you do not need to do is try to hide from the bank. To the question: "Do not cry, what will be?", You can give the exact answer: "Fines and a spoiled credit history." Even if the bank can not get through and meet with an unscrupulous debtor, then its interest on the loan will continue to accumulate interest, which it will be necessary in any case to repay.

If there were short-term financial difficulties, it is better to achieve debt restructuring or deferred payments, rather than taking new loans to pay off old ones. Here, each borrower must make a decision, depending on the situation. After all, only he sees the solution of his problems and knows at what period they can decide.

Simple tips for borrowers

Before you make a loan in any bank, you need to familiarize yourself with its terms. Further, if all the requirements of the bank correspond to the potential of the borrower, you can proceed to study the loan agreement. All items and attachments should be carefully studied and treated with utmost care.

All items that relate to figures need to be independently calculated using a loan calculator, because low interest rates often hide behind themselves high hidden fees. Therefore, it is best to compare the conditions and rates in several banks, but do not hesitate to ask the manager to calculate the required amount, as well as ask about incomprehensible points regarding mandatory payments.

Only after careful consideration of all the proposals can you protect yourself from the question: "I do not pay the loan, what will happen next?", And boldly apply for a loan, counting on its capabilities. Also, do not give up mandatory insurance, because, as can be seen from the above, there can be unforeseen situations. Sometimes it is better to overpay the insurance company a little, but feel protected from temporary financial difficulties.