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Consequences of non-payment of a loan

 

Delays in repaying non-bank loans are frequent. Loan companies have their own ways to deal with the negligence of borrowers. Reminders, calls to settle arrears, prompts – these are just some of the less dangerous forms of loan repayment. In the event that the debtor does not try to contact the creditor and the debt continues to grow, the lender will probably resort to more radical methods. What consequences can we expect if the loan is not repaid?

Penal interest, i.e. the first way to mobilize the borrower

If we default on repayment, the first step taken by the loan company will be to count the extra interest , which together can give a substantial sum, and this will certainly not facilitate the repayment of the liability. Before signing the contract, we should carefully check the table of fees provided by the lender – thanks to her knowledge we will be aware of the financial consequences. It is worth mentioning that on the Internet you can find a public utility – interest calculator that will quickly calculate the amount of possible criminal interest.

However, it is always worth paying back loans on time , and this should be treated as a priority. Before making a final decision about an online loan, we should consider the repayment date. Deciding on a short loan period, knowing that we will not be able to meet the deadline, does not fit into the Code of Principles of the responsible borrower. The amount of the installment loan and the repayment date are two issues that should be matched not only to our needs, but above all the possibilities.

Calls for payment – what can you expect?

A popular form of reprimanding the debtor about his arrears in repayment of the loan is sending reminders, or calls for payment. Obviously, the debtor will be charged for the costs of reminders . The lender can remind us about the need to pay the debt with three ways:

  • Electronic
  • telephone
  • paper mail

The electronic prompt is the simplest, most popular and the cheapest form of the prompt. It is sent in the form of an e-mail or SMS, so it quickly reaches the debtor. The reminder method using a telephone prompt is used when the borrower does not respond to previous forms of warning. The phone prompt is more expensive than the electronic one, and charges are sometimes charged even if we do not answer the call. The last type of reminder – a written request, is sent in the form of a letter, most frequently referred to. Such a prompt is considered to be more significant than the others and at the same time may act as a pre-court payment request. All of the received prompts may be used later in the collection proceedings and presented to the court as evidence.

Monits can scare debtors and put pressure on them, accompanied by haste, which is not a good advisor. Many people take quick payouts by means of which they pay overdue installments. At first, this may seem like a good solution for getting out of debt, but with time we will see that it is a vicious circle, because there will be more and more pay-offs. In the financial sector, this phenomenon is called the spiral of debt , which is a serious threat for clients of financial institutions and often leads to the declaration of consumer bankruptcy. A much better way can be to extend the loan repayment date . It is worth asking for such a solution at the very beginning of problems with regular repayment of liabilities.

The debt collection process – what is it and how it goes?

The debt collection process - what is it and how it goes?

The definition of the debt collection process is written in the legal letter: a set of legal, procedural and factual acts that lead to the debtor’s obligation to pay to the creditor. Those who had the dubious pleasure to participate in a given process know that it is associated with strong emotions and unpleasant experiences. Debt collection can be divided into three basic stages:

  • Amicable debt collection – at this stage, negotiations and discussions with the debtor are held, which are carried out through various forms of prompts and personal visits of the debt collector – before the talks begin, it is worth knowing the rules of negotiating with the lender ; very often, the debt collection process is successfully completed at this stage;
  • Debt collection – to solve the problem by court of income when the amicable agreement attempts did not bring results; thanks to the court’s judgment, the debt collector gains a writ of execution, which then becomes enforceable – it is the basis for initiating bailiff’s execution;
  • Debt collector’s debt collection – at this stage, the bailiff proceeds to take action and undertakes activities such as: auction of movable property or real estate, searching for hidden debtor’s property, general supervision of execution.
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Private loans up to 350,000

Loan providers offers several different solutions for you who are in need of a loan. If you have an card, you can apply for an account credit or a credit card. If you need to borrow money for accommodation. If you want to borrow for movable property or other consumption, you can apply for Loan providers customer loan, a private loan without collateral.

Private loans up to 350,000

A private loan (blank loan) at loan providers can be taken at between 20,000 – 350,000, without collateral. The interest rate on providers blank loan is variable and is set individually. The loan can be subscribed for with a maturity of between 3-12 years.
Applications for loans are made online with or without mobile ID. A preliminary message is provided immediately. All applications involve obtaining credit information.

The bank does not charge any lay-up fees or newspaper fees. There is also the possibility to insure their loan through a loan protection. It can be good for unforeseen events that can lead to difficulties in paying, eg unemployment or illness leading to worsening income.

In order to borrow money from loan providers, certain requirements must be met. You must have turned 18 and have a fixed income. You also may not have any active payment notes. The higher your income, the more money you can borrow from the bank.

You as a borrower have the right to redeem loans at no cost at any time. It is also good to make extra amortization to lower your future interest costs. Everyone who has a loan with the bank receives double bonus when they use and trade.

The private loan can be used as a car loan, boat loan or to solve other more expensive credits. It is up to you to decide what the borrowed money should be used for.

The minimum loan amount is 200,000 and you can apply for a maximum of 8 million online loans.

The minimum loan amount is 200,000 and you can apply for a maximum of 8 million online loans.

If you need to borrow more or apply for a loan to a holiday home, you must call and talk to the customer service.

The mortgage ceiling is by default 85% of the property’s market value. If you already have and want to move mortgages to loan providers does not apply to the mortgage ceiling. On the other hand, you will be forced to repay yourself to 70% mortgages according to a 15-year straight repayment arrangement.

Loan commitment valid for 3 months

If you are going to buy a new house, it is good to obtain a loan promise. It is also something that offers. Loan commitments can be granted up to 85% of the value of the home and provide security both for you and the broker for bidding. An approved loan promise is valid for 3 months.

The size of a loan promise amount is always based on the financial conditions that your household has. If you are two people who will be living in the house or the tenant-owner’s apartment, it is usually advantageous to apply together.

A loan promise can be converted directly into a mortgage loan if the bid is won. It assumes, however, that you have provided correct information and your ability to pay has not been worse since the promise was made.

Just as for the private loan, all customers who have mortgages through the bank receive double bonus when they shop and use cards.

Loans for down payment or bridge loans

When writing a purchase contract, it is customary to pay a down payment. If you need to borrow it, you can do so at loan providers. That loan is a short loan and must be paid back on the day of the entry to your new accommodation.

If you have not been able to sell your old residence before the date of access to the new one, a situation may arise where you have to pay for double accommodation. On such occasions, loan providers offers a so-called bridge loan.