When deciding to apply for a loan from your bank, the first step should always be to inquire at your institution about the consequences that affect the applicant if he is no longer able to pay the installments of the personal loan initially requested.
Unfortunately, it often happens that consumers, attracted by the favorable lending conditions of the credit market, find themselves asking for a loan without carefully evaluating the clauses of the contract relating to the debt amortization phase. Therefore, it is always advisable to include in your contract some form of guarantee aimed at protecting the subject in case of financial or health difficulties, preventing the loan from being extinguished, such as the option for the installment skip or the guarantee.
In many cases, therefore, even a short time after the signing of the loan and in the absence of the aforementioned guarantees, it may happen that you are not able to comply with the commitment made. Therefore, what to do if you are unable to pay a loan?
Promptly notify the bank of non-payment
When you realize that you are not able to return the credit, the first step is to promptly contact the bank where we have opened the loan.
It is therefore essential to go to the credit institution and communicate the problem as soon as possible and above all it is advisable to do so before the installment payment has expired. In doing so, the bank will have more time to think about the best solution to propose to the applicant and the latter will not have to pay any default for failure to pay the installment.
It is therefore strongly advised not to pretend anything and to postpone the matter. Already at the first delay the banks in fact send by mail the so- called payment reminder which provides for an increase in interest following the application of a variable sanction and defined in the loan contract between the credit institution and who requests the loan.
Change your personal loan repayment plan
The first solution that is generally proposed to those who realize that they are no longer able to keep up with the loan installments is to go and change the debt amortization plan.
In other words, it is possible to change some of the conditions provided for in the personal loan contract. Specifically, it is possible to expand the credit repayment plan so as to lighten the payment of the installments. The applicant will have to pay off his debt over a longer period of time, but will thus have the opportunity to take on a less consistent monthly payment.
Opt for the debt consolidation loan
Another possibility could be to take into consideration, as soon as you realize that you are not able to remedy the extinction of the loans, the so-called debt consolidation loan.
This is a particular form of personal loan that allows you to consolidate (hence the name) debts taken on through other loans. The debt consolidation loan would therefore allow those in difficulty to pay the installment payment to obtain additional liquidity to be used to remedy the debt.
However, it is important to point out that, among the guarantees necessary to obtain this loan category, it is essential that the applicant has not yet been reported as a bad payer. It is therefore a valid solution only if the buyer communicates his problem to the bank before the installment payment expires.