It is quite easy to get a bank loan, but it is not that easy to pay it back. Many people have problems with a timely return of debt. A common reason is a lack of information: borrowers rarely read what is printed in the contract in small print, and therefore do not even know what the full amount of the loan will be. Sometimes, the reason of the impossibility of paying a debt is a sudden illness, difficulties in the family, dismissal, etc. Anyway, a person faced with this problem must learn what to do to minimize losses and avoid even more misfortunes. So what to do if you have nothing to pay a loan?
There are several options, and the choice depends on how far the situation has gone. If the debtor communicates only with the bank so far, one strategy will be optimal, but if the debt has already been bought by collectors, the other one. Completely different methods should act when it comes to court.
Situation 1: You want to keep a good credit history.
The most favorable scenario for a borrower is possible under a number of conditions. The main thing that is needed for this is a good reason for not returning the debt: illness, temporary disability, loss of work, etc. The second is the bank’s willingness to give a discount to the client. And the third is the opportunity to find funds at least for partial debt repayment. The basic rule for those who currently have no opportunity to pay loans, but at the same time there is a desire to preserve the credit history, is to actively interact with the bank. You need to politely answer all calls, explain the problem and make promises. The general message should be something like this: “At the moment I have no money to pay a loan, since I am in a difficult financial situation, but as soon as the problem is solved, the debt will be repaid.” It is best to contact the bank yourself before the organization starts applying sanctions.
Ask for the restructuring of the loan. If the bank considers the borrower's request, it can change the terms of the contract: for example, reduce the interest rate on the loan, extend the repayment period, change the payment schedule.
Situation 2: The task is to avoid court.
Restructuring is not for everyone. It so happens that the loan is overdue without a convincing reason, the bank refuses to meet and meets the debt collectors. In this case, you have to cooperate with them. The main goal here is to prevent court and increase in debt, as well as to avoid problems at work, to maintain composure and peace of family members. If collectors call you, make sure that this company operates within the legal field. When an employee calls by phone, he is obliged to introduce himself and name the company to which the debt has been transferred. Also, the collector at the request of the debtor must present the cession agreement and other documents on the overdue loan. Now collectors resort only to legal methods of debt collection, and cooperation with them is often the most profitable way to get rid of the loan.