In the conditions of economic instability, banking institutions are forced to suffer huge losses primarily because of the infantility and dishonesty of borrowers. It also contributes to the revitalization of credit fraudsters. To compensate for financial risks, most credit organizations set too high interest rates on loans, which must be paid by bona fide borrowers.
At the same time, experts state that the number of people who borrowed money but show complete carelessness regarding their repayment on time has not decreased.
Magnitude of the problem
One way or another, but the question: βI have a loan overdue - what should I do?β becomes relevant even if there has been a delay in making a payment for just one day.
However, many sources contain information that if the borrower was 2-3 days late with payment, then there is nothing wrong with that. At first glance, we can agree with this. You just get an SMS message asking you to pay the resulting amount of debt, and this incident will be exhausted. However, no one takes away from the bank the right to apply to the credit bureau, and if you intend to apply for a new loan, your βmistakeβ on the first debt will be visible to all creditors. In this case, you really have to seriously think about the question: βI have a loan delay. What to do?"
It is important to remember that the sooner you pay off your debts to the bank, the less severe the consequences will be for you.
For example, if you have not been paying a loan for half a year, then a banking institution will most likely soon cease to be loyal to you and will begin to use legal tools through which it can reach the court. In this case, ask the question: βI have a loan overdue - what should I do?β it will be too late. The matter may be complicated by the fact that your property will be seized.
The consequences of late payment of a loan
So, are there problems for late credit and what to do in this situation? Yes, the borrower may have trouble, and in most cases they are material in nature.
He will have to not only pay interest on the loan, but also interest that he accrues for the delay in making the payment. In the part of banking institutions that specialize in consumer loans, penalties can be sky-high and exceed the size of the main debt.
Those who are particularly concerned about the question: βI have a loan overdue. What to do?" must understand that the fact of late payment is negatively reflected in the credit history. What does this mean? Just the fact that your chances of getting a new loan on a relatively weekend will be close to zero. Well, you can generally not dream of a mortgage lending program.
Also, the borrower will bear all legal costs and expenses associated with the consideration of the claim for the enforcement of debt.
Often, banking institutions sell debts to collection agencies, whose employees use strong psychological pressure, and reminding borrowers money obligations day and night. In this case, of course, the question: βI have a loan debt. What to do?" is of paramount importance.
Delinquencies are not beneficial to financial institutions
Naturally, any banking institution is not interested in delay, even for the purpose of enrichment through the imposition of penalties.
The situation is such that the Bank of Russia puts forward requirements according to which each credit institution should have large financial reserves when it comes to overdue loans. If failure to fulfill a monetary obligation will bring a loss to a banking institution, the reserve should compensate it. But if there is no material damage as such, then the reserve is simply the sum insured, which practically makes no profit. Of course, financial institutions are trying to make the size of the reserve as small as possible.
Options for solving the problem
So what to do if you have overdue a loan? The general situation and advice on this subject can be reduced to one thing: try to make payments on time and not take the matter to the extreme. Think carefully about the decision to lend for a large amount. Analyze whether you can repay such a debt if you get fired, reduce your wages or suddenly you become temporarily incapable of work.
Unfortunately, this often happens, one must be prepared for this.
Refinancing procedure
If you have a loan debt, what you do not know at the same time, then the most reasonable is to refinance.
In other words, you are applying for a new loan at a lower interest rate to pay off your principal. Thus, you can quickly get out of financial bondage.
Debt restructuring
Of course, the question: βI have an overdue loan, I do not pay on the loan - what should I do?β for many it is topical. As an alternative to solve this problem, you can advise you to contact a banking institution with a request for restructuring, and try not to put this matter in the dark. Thus, you can reduce the size of payments, and in some cases, get a delay. We emphasize once again that it is very important not to aggravate the situation, to actively communicate with bank employees and to prevent months-long delays.
Pay off debt on time
Moreover, you should remember that as soon as you have delayed payment at least for one day, you will be charged penalties. Moreover, in addition to them, the bank for non-fulfillment of its obligations may impose a fine on the borrower.
As already mentioned above, if the delay is 2-3 days, the bank will remind you of this using SMS messages. If you ignore it, then at the next stage of solving the problem, a bank employee will call you. He will ask you to properly fulfill your loan obligations, threatening you with penalties in case you do not do what is required of you.
So, you have a loan delay, a loan delay in the bank. What to do in this situation, you have no idea? If you did not make the payment on time due to illness or departure on a business trip, it will be optimal to notify bank employees of the exact date of making the next payment.
In the event that you were unable to repay the amount due in time due to a deterioration in your financial situation, it is better not to postpone the visit to a banking institution and arrange with employees for a temporary delay or restructuring. However, the financial structure will agree to make concessions to you if the reason for the delay in payment is substantial: temporary disability, dismissal from work.
If the borrower will be passive in relations with the bank, the latter has the right to sell debt to collectors.
Going to court
The final stage of solving the problem with unscrupulous borrowers is the appeal to the courts. As a rule, debt collection litigation lasts from several months to one year. If, from a legal point of view, the loan agreement is drawn up correctly, the court will most likely take the side of the plaintiff, sooner or later the defendant will be obliged to repay the debt to the bank. However, such a turn of events may be beneficial for the borrower, since the judicial authority can write off the amount of penalties, forcing the defendant to compensate only the amount of the principal debt.