The simplest, of course, is to repay the entire loan debt and repay the loan ahead of time , unless the bank objects to its early repayment. But many do not. Wage cuts, job losses, temporary incapacity, unemployment and increased spending – all of which can lead to you not being able to repay your credit as before.
Many solve the problem by extending the loan repayment term, but the debt is not reduced, so this method cannot be considered an effective way to get rid of credit. What to do and how to get rid of loans? You may find our tips useful.
Instruction on how to get rid of quick loans and other loan
Try to write down your expenses and income on a separate page and analyze how much of the budget you give back to the creditor. If this amount is no more than 30% of your total income, you have to deal with the loan in full. Sketch Your Future: If the situation does not worsen, but may even improve, then you can continue to pay off your debt according to the bank’s schedule.
Try lowering your monthly payment by lowering your interest rate. Reach out to your creditor and ask for a small discount on your debt, but speak with a bank representative in a confident, balanced voice. In this case, you will be able to ascertain how helpful the creditor will be when it comes to losing even a few payments. Because it is very important for them that the borrower should not raise the debt and pay regularly.
Calculate how beneficial it would be for you to be credited with another bank. Today, there are enough companies and investors in Latvia who are ready to pay off your debts to several banks, instead offering you a single credit agreement. This way, you will pay off your debt once a month, and it will cost you much cheaper than repaying some of your earlier loans. It may not always be profitable and reasonable to get out of the situation, but many have been able to solve their problems precisely because of the over-accreditation.
If you really don’t have enough money to pay back your credit
You can go to bankruptcy. In this case, you will be able to prove your insolvency much quicker and easier than at first glance. Of course, to declare bankruptcy, you will need to sell all your real estate and give away a small portion of your personal income for a while.
However, this is not comparable to bankruptcy: you can write off hundreds of thousands of euros in debt, often getting rid of millions of euros in debt. When you are declared insolvent, all long-term debts will be written off , but you will be born again (financially). Thousands of borrowers have already used this opportunity in Latvia. If you start your own business in the future, you will be able to work abroad or earn income bypassing your bank account.
Applying for a loan to repay another loan is not the worst thing that can happen in life. There can also be more difficult situations, as even the most negative experiences are also experiences. However, if you haven’t dealt with a small loan repayment, you might even be happy. Because your problems are much smaller than what you might have with a large loan.
Any situation to get rid of credit is individual. Undoubtedly, there are also borrowers who easily repay even large long-term loans, but problems with the bank can occur to anyone, unplanned. Most importantly, you know that every problem has its own solution, so you don’t have to be afraid of it, but you have to solve it.
Those borrowers who have decided to go into bankruptcy
In Latvia and have become insolvent need to know that in the future you will hardly be offered any other credit. At best, they can only count on fast credit. But those who have really had a hard time paying off their debts are unlikely to dare to take another such loan.
For those in need of financial support from time to time, it is much more convenient to create your own financial aid “pillow” and use it without paying interest.
In any case, if you are currently unable to reach something or you simply cannot pay your debts, do not survive! Life is too long and you will still have many opportunities to achieve your goals.