There is no such person who at the time of borrowing or taking a loan would know with certainty that nothing will change in his financial situation and will be able to comply with all the provisions contained in the contract.
It is good when this happens because it means that we control the state of our resources and, in the event of an unexpected crisis, we have a plan B.
Thanks to this, we also avoid additional costs associated with late repayments. What to do if we have financial problems that we cannot get out of? Many borrowers try to save on another loan, which often leads to uncontrolled debts. Read our tips on how to get out of the debt loop.
How do you get out of the debt loop?
Many a person with financial problems wonders how to get out of debt? The quickest solution would simply be to pay off those debts. Unfortunately, since we are struggling with the financial crisis, we have probably already exhausted most of the solutions to the question of where to get money to pay back loans. Therefore, standard debt repayment will not be possible. You should then consider alternative solutions. Although there are several, we must also remember that none of them guarantees success – we may face the consequences of our decisions and face bailiff proceedings – because this is how disputes between lenders and their debtors usually end. This is the worst case scenario, but unfortunately it is quite common.
Borrowers often take out loans despite the unstable financial situation or decide on payday loans, although they do not have a stable source of income. Each bank is guided by strict criteria in its operations, according to which it selects borrowers. Therefore, after checking the creditworthiness of your potential client will refuse to grant a loan. However, loan companies check the client’s databases, but they present less stringent conditions, which increases the risk of late repayment. In this situation, it may take some time before they collect any outstanding payments.
How to deal with paying back payday loans when we lack money?
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When choosing payday loans and not bank loans, you must be aware of the increased risk associated with such a financial product. First of all, it has a much shorter repayment period. We will have up to 8 years to settle a cash loan, e.g. at ING Bank Śląski, while loan companies, for example NetCredit or TaniKredyt, usually give us 30 days to do so. It is worth remembering that some lenders introduce a promotion or simply permanently extend the loan period up to 45-60 days. Of course, it is possible to make use of the installment obligation, but in this case a longer repayment period is associated with a much higher interest rate. It may happen that by borrowing PLN 10,000, the total amount to be donated will be almost double.
In the event of repayment problems, we have several solutions at our disposal, which we can use provided that this information is submitted before the end of the loan period. Among them is the possibility of:
- extension of the repayment deadline by 7, 14 or 30 days, however, this service is available at an additional cost. The amount of costs depends on the amount of the loan, if we want to change the repayment date and whether we have the status of a new customer or a permanent one.
For more information on this topic, see WHAT IS LOAN ROLLING?
- loan refinancing, i.e. repayment of our liability by another lender. This creates a new debt for the new creditor. However, we do not have to worry about growing debt. To take advantage of this solution, you will have to pay back the interest to the original loan company.
For more information on this topic, see WHAT IS CREDIT REFINANCE, LOANS?
What to do when the deadline has passed?
However, if the payment deadline has passed and we still haven’t given the money back to the company, we shouldn’t panic! Let’s listen to the advice of specialists who ensure that applying for more payday loans to pay off previous payments is not a good idea. The result may be even larger debts, and we will receive the status of insolvent. If we do this, we can quickly expect calls and messages with reminders, for which, of course, we will also have to pay.
If that does not help, the case will be taken to court and debt enforcement will be dealt with by the bailiff. In addition, we also receive an entry in the register of debtors, so it will be very difficult for us to get another loan. To sum up – if we are not sure that we are able to pay our liabilities on time, it is better not to incur any more payday loans – this is associated with really considerable financial risk.