How To Get Out Of Debt And Get A Loan Again?
Today, it is not always possible to get a bank loan even for people with an ideal credit history. Banking institutions in our country are serious about lending issues and can reject a loan application for several reasons, whether it is insufficient official income, or its complete absence, unsecured debts, etc.
Consequences of non-compliance with the loan agreement
Before looking for ways to get a new loan, you need to figure out what threatens you if you don’t pay your overdue loan and what the bank can do to return the money.
So, firstly, if you violate the terms on your part, the bank will begin to account for penalty interest. In any loan agreement, the amount of such fines and the terms of delay, after which they begin to accrue, are initially stated. Thus, if for some reason you do not make obligatory payments, your debt will begin to increase in an arithmetic progression and will simply become overwhelming for repayment.
If there is a loan debt, and you do not pay it for several months, the bank begins to send you a notice and without receiving any response from you, simply sells the debt to a collection company. Collectors use more aggressive debt collection methods and begin their work with systematic visits to your residential address.
If the overdue loan is not repaid by the borrower over a long period, the bank or collection company files a lawsuit. As a result of such activities, lengthy litigation with the aim of collecting the debt at the expense of the personal property of the borrower begins. In this case, to win the case, you can only hire a very good lawyer, and this in turn will lead to unforeseen expenses, which in the end may not be justified.
Possible solutions to the problem
In order not to become a participant in lengthy court proceedings and do not lose your property, you need to do the following:
If financial problems arise, do not wait until interest begins to accrue, but immediately contact the bank for a choice of solutions to the problem.
If you have already begun to receive letters of debt, then do not ignore them and immediately contact the bank employees to clarify all the aspects.
In the event that the debt is transferred to the collectors, do not panic and get professional advice from lawyers.
If you receive a notice stating that your case has been brought to court, do not hesitate and search for a lawyer.
The fact is that the majority of banking institutions rarely choose legal proceedings to receive their money and agree that the borrower should pay the loan in equal parts even without interest.
In order not to aggravate the already difficult situation, we recommend that you go towards the representatives of a banking institution, of course, only if they act according to the law and do not violate your rights.