How to solve a problem with loan repayment?

In the event of repayment difficulties, several solutions are possible, but it is important to make the right choice.

If you are on the brink of financial hardship, consider finding an immediate solution. Do not wait until you are over-indebted to react. Nevertheless, even over-indebtedness is not a dead end.

Discover these three options that allow you to get out of over-indebtedness:

- Limit spending to increase your ability to repay

Before requesting the intervention of a third party, first try solving the problem on your own. Adopt a rule that helps you tighten your belt. Use economical devices to reduce your expenses. Refrain from unnecessary purchases and, if possible, find other sources of income. You can also consider the sale of property or assets, if necessary. Rigorously follow the evolution of your expenses and your income. Always keep your goal in mind: balance your budget.

If, in spite of your best efforts, the situation continues to worsen, do not hesitate to turn to financial institutions.

- Negotiate an extension or a consolidation loan with your backer

Contact your credit agency and ask for a rescheduling of loan payments. If the situation is only temporary and you are certain that you can turn the situation around, negotiate an additional payment period.

If the loan officer refuses, you can turn to other institutions and consider a consolidation loan.

In fact, engaging with several organizations will only complicate your situation. It is therefore advisable to consolidate all your loans in order to contract with a single source. The latter will become your sole creditor. With the debt consolidation loan, you only make one monthly payment and you receive an additional repayment period suited to your income.
The debt consolidation loan is the most effective solution in the case of insolvency, even with the extended repayment period. Caution! Do not be overwhelmed by your new purchasing power. Remember that you should always pay your debts.

- Appeal to the Debt Commission

The third solution is to resort to the Debt Commission. This is a legal institution that works to resolve problems of insolvency for individuals. It should be noted that the Debt Commission intervenes only for personal debts.

Gerard Mihranyan

Par , le Tuesday 5 February 2013

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