A loan is a financial aid that is requested to deal with economic problems or large investments, however, we must be very careful that the remedy does not become worse than the disease.
Failure to pay a loan can bring a chain of problems and leave a negative stain on financial history. Among the large list of possible defaults that can lead you to appear on a list of defaulters, the debt of a loan is one of the most serious.
It’s already late, I have a debt and I can not pay it
At the moment of having acquired the debt and not having the capacity to repay it, one could resort to some alternatives that diminish the negative impact before the entities or creditors.
The first thing is to face. If you have applied for a loan with a financial institution, a relative or a friend or acquaintance and you can not return the loan, it is preferable to assume a responsible attitude instead of hiding.
Second, it is important to detect where economic planning has failed. Paying a debt must be a priority in any financial budget. For this reason, it is important to consolidation loans near me. Then contact your creditors to explain the situation.
In case the default has been with a bank, it is preferable to approach it before the expiration of the payment day to negotiate the alternatives that allow you not to fail again with the obligation.
With family and friends, it is usually easier, but it is also advisable to communicate it with anticipation and total sincerity in order to avoid problematic situations. Even if it is, try to acquire a partial payment commitment with a specific date according to your financial situation, which allows your funder, be it friend or bank, to continue trusting you, as far as possible. If you really do not have any money to give an advance in confidence, an alternative may be to request a mini-credit, up to € 300, so that this second loan will help you save the situation of trust with your creditors. avoid worse impacts. However, it is very important that you plan your situation well and that you only request another loan no matter how small, if you are really sure that you will be able to return it. More information about mini-credits here.
It is a mistake to think that to stop paying a debt will improve your financial situation. On the contrary, not only does it not improve it but also brings other personal problems.
How to improve this debt situation?
Before a debt situation, the first thing is to get back that money and get rid of the pressure, so we present some tips so that you can repay your loan as soon as possible.
Calculate your budget
Write down the money that goes in and out of the house in a period of two weeks or a month. Add to this list a monthly average of less frequent expenses, such as taxes, insurance or clothing.
Try to increase your income as much as possible, be it overtime, extra shifts, seasonal jobs, private lessons or turning your hobby into a job.
Reduce expenses and buy only what is really essential. Try to save at home with lower consumption of electricity, water, heating, and other services. Use public transport, and, whenever possible, bring food from home to work. Talk to the family about how each can contribute to reduce expenses and increase income. Seeing that all make sacrifices will unite you in the fight against debt.
Once you have reduced the expenses, you can decide how to make good use of the money you have left. And most importantly, accept your financial situation and do not give money more importance than it deserves.