Loans: What to do if you cannot pay the one you requested?

You needed money and asked for a loan. Well, at that moment everything seemed to fit perfectly. You met your goal, you used the money and everything seemed to go great … until it was time to pay, and you realized that you were in trouble. Does this story sound familiar?

There are few people who have fallen into complicated situations when it comes to borrowing money. This situation is more common than you think and happens because of many factors. Sometimes, because they asked for more than they could afford; others, because something happened along the way – an emergency, an accident, a dismissal – and destabilized the budget. But whatever it is, the point is that paying the loan they requested becomes an odyssey. What to do in those cases? Here are some points that you should keep in mind to overcome this situation gracefully.


It is necessary to take action

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Realizing that they have trouble meeting their loan payments, some people choose to do nothing and hide from their bank or collectors; However, this is the least thing to do. It is necessary to do something! You need to be honest with yourself about your finances and start doing the calculations to understand how much money you lack.


Understand the consequences of not paying on time

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You must take the situation seriously, as it has consequences that are far from being a joke. Delaying your credit payments damages your credit history, causing banks to see you with bad eyes and be qualified as a “debtor” or a “bad customer.” In the future, if you want to request other financing, it will be harder to get it.


Talk with your bank

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One of the most important actions is to approach you to talk with your bank advisor. Explain why you cannot meet your payments, and it will be much better if the talk occurs before you fall behind. Together, they will be able to review the different options, since financial institutions prefer a negotiation rather than having to start legal processes.

For this, it is necessary that you have organized your finances and know for sure how much you could pay monthly. This way it will be easier to find an alternative that suits your needs.


Negotiate the terms of your loan

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Something you can do when talking with your advisor is to look for a modification in the terms of the loan you requested. For example, you can increase the term or reschedule your payments. In this way, the monthly fee you will have to pay will be less and so you can cover it without difficulties. In this case, what you should keep in mind is that the interest rate usually increases as a result, but will allow you to avoid falling into default.


Look for options in other entities

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Some entities offer to buy your debt by giving you new payment terms. If you find a worthwhile offer, make sure it implies a deadline and a monthly fee that matches your budget.


If you have several debts, you can unify them

If you have several debts, you can unify them

If the reality is that you have problems not only to pay a loan but also your credit card and some other debt, one option is to seek to unify them. With this, you will get everything to come together and you only have to make a single monthly payment. At this point, you will also save expenses on commissions, account statements, insurance, among others, because it will be a single debt. As always, in this case it is important to review the conditions that are offered before accepting.

Now that you have all the tips, there is no excuse to stop paying a loan and not take any action. Remember, the worst thing you can do is nothing, it is necessary to communicate it to your bank.

Finally, if you are planning to apply for a party credit, be sure to do the calculations carefully, requesting only the money you need and within a period that will allow you to return it without falling into trouble. Your finances will thank you!

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