In life, not everything can be planned until the end.” We took an installment loan or a payday assuming that our future income will allow us to pay it back on time. Despite our foresight and the best intentions, there are situations, which we simply did not anticipate. Sometimes one random event, such as illness, loss of job, unexpected expenditure, delay in payment may result in loss of our financial liquidity and consequent delays in repayment of current liabilities. It is worth being prepared for such circumstances earlier, having a contingency plan, in case of troubles, to reduce the costs associated with late repayment, and what is important to avoid entering into the debtors’ database.
Read contracts before signing them
When deciding on a loan, one should carefully read the terms of the contract, which certainly contains provisions on the amount of additional fees due to non-payment of the installment. If we find ourselves in a difficult financial situation, and we can not find a contract then it is enough to look at the lender’s website, because there we will find the identical contract template. Let’s check what fees await us in the case of delays in repayment, including, among others, interest or costs of warnings. Most loan companies charge additional costs from the third and sometimes even the second day of delay. This is one of the things you need to remember when choosing a loan company.
Check how loan companies treat debtors
It is worth browsing the internet forums in search of information about a given company. Internet users often describe such situations, they advise others what is best done in this situation, so that the consequences are as little as possible. Each financial institution has a different approach to the way customers are handled, or treats its debtors differently, you must keep this in mind when taking another installment loan.
Contact a loan company
After reviewing the experience of other clients, we should contact the debt collection department of our creditor. Let’s take advantage of the advice that we have found on the internet, but with the preservation of reason. Let us inform you about your situation, let’s talk about the reasons for repayment problems, – let’s say specifically and briefly. Then ask about the possible way out of the situation. For the loan company, the payment is the most important thing, therefore we will certainly be able to establish a good solution for both parties. In such a situation, the lender may propose to us:
- Renewing the loan – this is the simplest solution, with an additional expense for the extension
- Offset payment by another 2 weeks or a month
- Making use of the offer of another loan company, eg an installment loan product, whose payment is spread out into convenient and matched installments
The emergence of financial problems and the inability to repay the loan does not have to end badly. The most important thing is not to run away from the problem, but to face it.