It often happens that when taking money on credit or under property, no one wonders how he will return this amount. Situations in life are different and it is impossible to predict something. It so happens that the time has come to return the obligations undertaken, but there is no money needed and there is nowhere to re-establish. The amount of debt begins to grow. And how to pay off debts, it becomes incomprehensible.
Assessment of the situation
All cases are unique in their own way and the amount of debt can be completely different. First of all, you need to assess your financial situation. To begin with, in order to be able to pay off debts, you will need to determine the number of banknotes that can be given at a certain time and without harming yourself. It is best when this amount will be several times larger than the size of the contribution. Due to this, the interest on the loan will be significantly lower, and the debt repayment time will be significantly reduced.
Types of debt
All types of debt are conditionally divided into the following:
- Early Payments.
- Those that are repaid on schedule.
- Payments for which, for one reason or another, arrears are problematic.
- Those that are not considered possible to repay are hopeless.
For yourself, you need to clearly understand which group of debtors belong. Confidently knowing this, it will not be difficult to build the right strategy for overcoming the current situation. The question of how to pay off debts becomes relevant when incomes plummet. The reasons are different: non-payment of wages, the birth of a baby, illness or loss of working capacity. It is necessary to clearly assess the situation in order to make it clear how long or always (in case of loss of working capacity) this crisis will continue. This will help not to get into a situation when you have to ask someone: help pay off your debts.
Payout Plan
How to pay off loan debts? If there are funds and there is a desire to get rid of debt as soon as possible, then the first thing to do is to conduct a conversation with the creditor and draw up an additional contract. It, without fail, must indicate the size of the amounts of payment and commission, as well as all possible methods by which the payment will be made. After the final settlement with debt obligations, the bank or creditor must give a receipt for the payment of the entire amount and indicate that it is closed on the agreed date.
When it became clear that repaying the debt is obtained in the same period, you need to do this at least 1 day earlier. It does not hurt to find out from bank employees about whether the payment has passed on time. Compliance with such simple rules can never drive a debtor under penalties and fines. It is important to understand that the lender is interested in his own benefit, and to inform himself whether the payment has passed, he will not have a desire. The main thing when borrowing is to independently control the flow of funds to your accounts. This will remove the question of how to pay off debts.
How to pay off debts if you have temporary difficulties
It is difficult, being not in a very good financial position, to quickly close a loan. How to quickly pay off debts? With small and unstable earnings, it is not easy to pay loan obligations on time. To find the optimal solution in such a situation, you need to start planning your budget. It is necessary to come up with a table and enter in it all the monthly income and expenses. You need to start by recording all the amounts, expenses and income, but this is the first month. At the end of it, you need to carefully analyze all financial resources, exclude something from the expenditure side, and cut back something.
Then, next month, you need to plan the budget so that there is a separate column in which the amount of the repayable loan will be entered. It must be real so that it doesn’t turn out that a person will again be in a difficult financial situation.
Notify Lender
In difficult situations, it will be correct to notify your creditor of difficulties that arose for any reason. It must be remembered that any bank is fully interested in returning its funds and, if possible, with minimal losses. It is unlikely that in such a situation the bank will impose a fine on the debtor. It is necessary to try to agree with his representative about the possibility of extending the terms of the loan or about refinancing. It is important that it is clear that a person is completely interested in this, but for some reason he is in a difficult financial situation. It is necessary to do this as soon as possible, and not wait until the lender asks about the reasons for the delay in payments.
Peaceful ways to resolve issues with the bank
There are several proven methods for settling loan debts by peacefully settling all issues with the bank:
- Temporary deferral of payments.
- Several loans are combined into one.
- Debt is fully debited.
The first way, how to pay off debts, is that the bank extends the time for repayment of credit debt. The monthly payment becomes smaller, but due to the fact that the borrower constantly pays interest, as well as the fact that there is constant inflation in the country, the total loan amount that the debtor returns is increasing.
The second method provides that the borrower, having collected several debt obligations, cannot cope with repayments and the bank combines them into one loan. This method can be applied only in the case of a low interest rate, otherwise it is very disadvantageous for the debtor.
The third method is more an exception to the rule. And the bank uses it only in rare cases. He can completely write off the debt if the outstanding loan balance is too small or the borrower is dead and has no heirs.
Cases when a wife pays for her husband’s debts
Those who are bound by marriage have not only joint property, but also common debt obligations. It is not uncommon that married people during their life together did not resolve such important issues as common property, and during the divorce, they also did not bother to do this, as a result, they will have the same status as during marriage.
Should an ex-wife fulfill debt obligations after a divorce? Here are some nuances that depend on how the loan was issued:
- The ex-husband issued a loan agreement before marriage, but the validity of this document covers the period when they were married, as well as the time of its dissolution.
- At the time of the loan, the second spouse acted as a guarantor or co-borrower.
- The ex-husband executed a loan agreement, but did not notify his wife about it, but the funds received were spent on joint family needs.
- The fact that the husband issued a loan and spent money on his needs, the wife found out after the divorce.
All of these circumstances have different effects on the ex-husband and wife. Especially in a situation where one of the former spouses falls into such a position that he cannot repay the loan, or completely refuses it.
If the loan agreement was drawn up even before marriage, on a common basis, all the obligations are borne by the person who executed it. But there are different situations, and only the court can understand them.