Payday Loan Consolidation: Problem with repayment of the loan
February 22, 2019
Excessive expenses that have appeared unexpectedly, a moment of oblivion during shopping or job loss – these, also many other situations, affect numerous borrowers. When you also have difficulty paying the next loan installment, check with us on what to do to protect yourself from problems.
We should only take out loans at this point when we know that we will be able to cope with their repayment. Unfortunately, cases go after people, so it may happen that our good financial situation will suddenly collapse for some reason. In such cases, the question arises – what about the repayment of the loan? If we do not repay your obligations in a timely manner, unpleasant consequences may arise.
The main effects of the lack of timely repayment of a cash loan or other type of loan are penalties, including reminder, calculation of penalty interest for each day of delay, moreover, if we do not return the installment within the deadline set by the company, it usually terminates the contract and transfer the debt for debt collection. Then, when the debt collection company also does not recover the money, it can refer the case to court. Here, the consequence of the loss is the bailiff and the seizure of assets to cover debt and related costs.
First of all, do not put your head in the sand
If you want to protect yourself from these difficulties, first of all remember not to hide your head in the sand and pretend that you have no problem. When you have a chance to borrow money from your family, think about it. Be careful about other loans from banks or loan companies, because you can fall into a spiral of debt.
Also, contact a loan company that you will not be able to pay your debt on time. Do it even before the payment deadline expires. Many loan companies meet the needs of their clients in such cases and distribute debts into even smaller installments, the repayment of which we can deal more easily. Of course, this is most often associated with an additional cost resulting from the extension of the repayment period, but nevertheless we protect ourselves against other, more serious effects indicated earlier.
Think about additional sources of income and tighten the belt
If you do not have enough money to repay the cash loan, then think about making some extra money. You can find an additional job, you can also sell items you do not need on auction portals or through classifieds websites. In this way, you’ll be able to improve your budget and get extra money in installments.
On the other hand, try to minimize your current expenses. Certainly in your budget there are areas that can be reorganized and will be able to give you even a few dozen and more zlotys every month.
Is it worth taking a consolidation loan?
In the context of difficulties with paying off several loans, the idea of taking a consolidation loan is also often present. Thanks to it, we can pay off other debts and then pay them back to another lender in one installment. We can choose loans without collateral and with collateral, for example under a mortgage.
Before taking out a consolidation loan, it is good to calculate whether this option pays off.