Often, in everyday life there is a sudden need to get small cash. A very simple way is to take out a loan or payday loan. Companies are tempted by free loans, such as $ 1,000 borrowed for 30 days with 0% APRC. Obtaining such a loan takes a moment and after a few minutes we have money in the account. An easy and quick way to get cash, which is unfortunately treacherous. What if after 30 days it happens that we are not able to pay this amount?
Then the companies offer the loan extension, on their much worse conditions. In this way, it’s easy to fall into a payday loop by paying off one loan with another. In most cases, the customer takes 2-3 loans to renovate the apartment or other emergency needs, after which the installment begins to get pregnant.
Unfortunately, the next thing is to take another one so as not to fall behind with the repayment of other obligations, and so the amount to be repaid drastically increases. How to abort such a process? How to realize in advance that you can take other steps to solve the problem? In today’s post we will try to answer these questions.
Remember, it’s up to you at what stage you will deal with the problem of loans. The later the reaction, the more long the spiral is developed. At the initial stage there are certainly more help options, after a very short debt they remain fewer.
Getting out of debt, how?
If your loans do not exceed $ 3 thousand and you do not have debt in more than 4 companies, do not look for consolidation. It’s still a level of crediting that you can easily handle. Prepare your loan agreements, write down exactly which company demands what costs. Call companies, ask about the possibility of getting along, spread out loans in installments. If the loans are already terminated, do it with the companies that bought back your debts. Negotiate additional interest accrued with them, companies are ready to redeem them if they do not default. The relatively low amount of debt can easily be repaid over the next 12 months. A possible solution is also taking a loan on better terms which will pay off the remaining liabilities, no less obligatory taking into account its costs and realistically assessing its repayment options.
Consolidation of loans and payday loans
If your loans are higher than $ 3,000, think about consolidating them with a bank loan. Good credit bureaus have fairly cheap offers to consolidate payday loans and loan commitments. Replacing a large number of loans granted for short periods, up to 24 months, with one bank loan, possible for up to 144 months, will certainly facilitate the repayment of liabilities. The average amount of non-bank loans that we consolidate to clients is about $ 30,000. The client who bears the title of shameful winner had $ 120,000 to pay on her non-bank loans. Not including banking. The installment on so many commitments exceeded her income many times. Thanks to cooperation with banks that are able to consolidate loans, it was possible to obtain a loan for a client with a convenient installment. So, if your loans have no overdue payments of more than 30 days, it’s still time for bank help. The only condition is that companies do not have time to enter the customer in the database of debtors such as BIG and KRD.
If your loans are overdue for more than 30 days but you do not have any entries for the above mentioned BIG and KRD, call us, we will try to conditionally launch a bank loan. However, when there are entries to bases and arrears over 2 months it is time to act differently. In the first stage, phones with reminders appear. An employee of the company harasses us in the apartment, calls the employer. After further delay, the client receives a pre-trial payment order, after some time the court’s decision regarding his debt. The decision in the absence of an answer or negotiation is always clear: handing over to the bailiff for a long time. The bailiff takes a bank account, collecting money, up to the amount free from attachment. After some time, in the event of a significant debt, he knocks on the door.
How to deal with the problem of loans and payday loans yourself?
If, unfortunately, you have debts that you can’t deal with, don’t sit back and act! The Internet is a treasury of knowledge, skillful searching helps solve many problems. Not all of us have graduated from law studies and can write appeals against court decisions or conduct a settlement process with a non-banking company. Specialist debt relief companies using an army of lawyers are, however, very expensive. How to do it yourself or with our little help?
Talk, do not run away from problems
Many people do not receive calls from loan companies in a situation of considerable backlog. The key to the solution is honest conversation with the company’s employee. Of course, he may disagree with our understanding of the settlement. It is worth then contacting again by writing the appropriate instruction to the company’s address. Documenting your willingness to get along often will save us later when the debt goes to court. If the company first agrees to our other, longer repayment period, our problem is solved. The only thing loan companies care about is the return of borrowed funds, which is why they are able to be very flexible for their clients.
Do not tighten the credit loop!
This sentence has already been written a million times, despite this, many customers continue to go the same. NEVER, AFTER YOU PAY OFF ANOTHER. Your repayment balance, in the case of the first one, for example, is $ 3 thousand, paying it off, taking a payday payout, the balance increases by $ 5 thousand. What if after a month you still can’t get it back? Another payday pay?
Consolidation of non-bank loans
As above, the best option would be to consolidate all loans and payday loans. Call a proven broker, credit advisor. Such a person will help you turn all expensive payday loans into one bank loan. If the APRC on a 12-month loan is up to 300%. Compared to banks where the APRC will reach you around 12%. This is a huge gap that clearly illustrates the difference.
Pay back as much as you can
If you do not have the funds to pay off all your loan installments, payback as much as you can. Repayment of up to 30% of the installment will prevent the loan company from terminating your contract and will certainly try to settle negotiations. In the event of such a procedure, it is important that the funds you pay off are directed towards paying back the loan principal, not interest. It is good to include in the transfer orders the additional information “repayment of loan No…. of… repayment of principal”. A later case in court, if it happens, will help you get out of debt better. The courts quite often cancel interest arguing that the client has more than repaid the total capital. No lending company will hold the customer liable if he has repaid the principal amount of the loan in advance.
Refinancing loans is too expensive
Don’t agree to refinance your loans. Companies artificially increase your debt in exchange for a short extension of the loan period. Find out what are the refinancing costs. To what extent is it beneficial from your point of view and perspective of repayment. Read the contract in detail, it happens that interest on unregulated installments is less than refinancing a loan.
Cool calculation and repayment plan
Develop a plan to repay your obligations without incurring more. This seems a matter of course, unfortunately, customers operating under pressure resort to such solutions. Numerous telephones with reminders or screams often cause stress and helplessness among clients. It is important not to succumb to such pressure, which would make things worse. It is worth surviving a few months of a harder period and then have peace.
What if the debt was taken over by a debt collection company or bailiff?
There is a way out of every situation, just like when a bailiff or field debt collector knocks on your door.
– As in previous cases, talk, negotiate, try to get along. Everyone cares only about one thing, debt recovery. If you take the initiative, you will be able to solve the problem possible. Debt collection of loan companies is not profitable to bring cases to court, it is a considerable cost for them, so they will do a lot to get along with the client, often agreeing to the conditions proposed by the client.
– Try to reach a settlement. Examples of settlement patterns can be found on the Internet, if you have no idea how to go about it, use our help or legal assistance.
Most problems cause postponing matters. Customers until the last moment believe that they can cope with the repayment of their obligations themselves. They often turn to specialists for help when it is too late. The sooner you think about solving your problems. There are more ways out of difficult situations.