Loan Repayment: Changes in Life
When life changes, the installments may change. We can repay more and sooner – how to do it? What to do if there is no repayment money at the moment?
Life is change
No one knows their future. Usually imagined as a prolonged presence with little change. We think we’ll be in the same job, maybe a step up. The kids will be a bit bigger, but that doesn’t change much. In fact, our lives change more and more than we expected over time. New opportunities are coming and some long-term issues are over. We could not know that we would be offered a different, better job. We had no idea that someone in the family would be seriously ill. We did not expect our business to disappear or double. The circumstances change as well as ourselves and with it our wishes, joys and worries. How many times will this change our financial capacity.
When we took out the loan, we pledged to repay each month the amount we believed was just right. After two or three years there are many things different in our lives, but the repayment is the same. There may come a day when we realize that
- we can repay the loan faster or immediately,
- or vice versa, that we do not have the installment right now.
What to do in such cases?
Money flows at different rates. Let’s adapt to it.
This is good news when we have more money than we expected at the time of the loan. In this case we can:
1. Continue repayment unchanged and use free money differently
2. Increase the repayment or repay some larger portion of the loan than regular repayments
You can find everything about increasing the amount in the chapter Can the installment be increased ? in Loans repayment: changes in installments.
3. Repay the entire loan (early)
You can also find out how immediate or early repayment works in the article Loan Repayment: Changing Repayments, in the Is Early Repayment Possible?
WHEN I PAY, IS IT THE END OF THE CONTRACT?
Early repayment does not always automatically mean the end of the contract.
- Naturally, a one-off loan agreement (Partner Loan, Individual Loan and Consolidation) ends with the last installment if it is a regular repayment. If we opt for early repayment, you must first ask for an exact quantification of the amount due, including interest and any fees at the date of the anticipated repayment. Once we have quantified and repay the set amount at the scheduled time, everything is in order and the contract ends.
- We can terminate the revolving (repeated) credit agreement for an indefinite period of time (Cash, bankil Card) and thus terminate the contract only if all obligations are repaid. The termination of the contract is sent by e-mail or by letter to bankil.
Less money, unpayed installation
Unfortunately, there may also be a situation where there is no money to pay back. What to do in this case? Everyone recommends to communicate, communicate, communicate! Act actively with the company that lent us the money. Do not be ashamed or wait. “Sticking your head in the sand” does not solve the problem by itself, but increases it.
When it’s not installed, You don’t make polish policy!
The lending company will notify us of the outstanding amount by letter, SMS, email or telephone first. If it is not an omission, but there is no real repayment, we will try to find an individual solution with us. This is always more helpful when dealing with society in a timely and honest manner.
DO YOU KNOW THAT YOU ARE INSURED?
The repayment of the loan can be insured. Insurance is just in case we accidentally get into trouble. It can be an illness, an accident with consequences, or if we lose our jobs. Then it is in our interest to report such an insured event immediately to the insurance company and to find out if our situation is solvable with the help of insurance. The lending company can advise us on how to contact the insurance company and how to proceed with the insured event. It is also in her interest that our repayment does not fall into an unsolvable situation.
When the worst comes
Unfortunately, in the event that the debtor stops paying, does not communicate and does not solve the problem, the company has no choice but to take legal steps that are not pleasant to either party. Then it is worth taking these two recommendations seriously:
- ability to always insure in advance, and
- if trouble comes, contact the company right away and solve it by agreement!