If we are running out of credit installments in the home budget, we must act quickly and decisively. The sooner the bank is notified of the situation, the sooner a solution can be found. How can you solve your loan repayment problems? Here are some hints.
Life varies and not all situations can be predicted. Especially for long-term credit obligations. And it is the loss of a job, accident or illness in the family that can cause a serious financial crisis. Fortunately, in every bank there is a possibility of using various support options when repaying chalk. We can choose from extending the loan period, refinancing loan, consolidation loan and loan holidays. Check how you can solve the problem of loan repayment by using one of the options described by us below.
Extending the loan period
It means that our monthly installments will become much lower. But a longer loan period will make the total cost of the loan higher. We will pay interest for the years for which the loan will be extended. This option also means that you can no longer be late paying your installments. People who have obtained permission to extend the loan period and are again starting to have problems paying back the loan can be called by the bank to repay it immediately.
At the moment when we have problems paying off the loan taken out earlier, there may be much cheaper loans on the market. So it may turn out that the best solution will be a new loan, which we will devote to repay the entire previous loan. This new loan is called refinancing. What will we gain from it? Smaller monthly installments. The installment decline for refinancing loans can be as high as 30%.
This option means suspension of installment repayment. This period can be very different, the bank may agree to suspend them even for several months. Credit holidays mean that you can pay no installments at all, you can only pay interest. If we choose this option, we must remember that the loan period will be longer.
A consolidation loan
It’s a solution that is available to people who have more loans. It is based on their combination, i.e. consolidation. Banks offer two types of consolidation loans: cash and mortgage. You can find out more about the advantages and disadvantages of a consolidation loan in this article.
As you can see there are several options to choose from. Banks are much more interested in extending the loan period than in giving up the customer completely. Therefore, banks will easily help you solve your loan repayment problems.