Even the most financially responsible person may simply be out of luck to make them fall into debt. Unfortunately, it is easy to get into debt, but you don’t have to solve this problem later. Some decide to ignore the growing debts and count that everything will sort itself out.
However, this is a very bad tactic, which in most cases will only lead to even greater financial ruin. In that case, what to do to get out of debt?
Join in our best debt consolidation loans online
Many people are reluctant to look at loan companies, but in fact, using their services can help a lot if we do it with caution. Therefore, it is worth reviewing as many loans offer as possible before you decide on one, in order to definitely consolidate as attractive terms as possible.
We should pay attention primarily to such factors as:
- loan interest rate
- number of installments
- commissions (for example, commission for granting a loan)
- additional fees.
We should not decide on the first debt consolidation loans online offer, which will catch our eye because there is a good chance that with a little effort we will be able to find a better one.
Contact your creditor
Throwing out letters and rejecting phone calls from a creditor will not improve our situation, on the contrary. A much better approach is to openly admit your financial problems and search for a solution together with the creditor.
Before the debt collector takes care of our debt, there is still time to restructure the loan. It comes in many forms, and the most popular of these are credit holidays and extending the loan repayment period.
Credit holidays allow you to pay back your loan installments for several months. They are moved at the end of the repayment schedule or divided into parts and added to other installments. You will ask: how is getting credit holidays different from simply not paying installments on time? That we will not be faced with any unpleasant consequences, such as receiving a termination of the loan agreement, for example.
Credit holidays are the best choice when our financial problems are short-term and we are sure that we will recover soon. So, for example, we lost our job, but we know that we will definitely find a new one and be able to repay the loan again. However, what to do when our financial situation has deteriorated permanently?
The answer, in this case, is to extend the loan repayment period. In this way, we also increase its total cost but reduce the installment, so its timely repayment should be much easier for us.
However, even if a debt collector has already been involved in the case and restructuring is not possible, there is also a way out of this situation and contact with the creditor.
Debt collectors can be frustrating, which is why debtors try to avoid them, but it is in the interest of both parties to establish communication and to resolve the matter amicably. For example, with a debt collector, you can divide debt into installments and set a repayment schedule that is feasible for us – but for this to happen, we must be willing to talk to him.
Consider consolidating liabilities at the bank
At most banks, you can now find a consolidation loan. It is a loan with which you can pay off many different liabilities (credit cards, cash loans or car loans) and combine them into one, easier to pay off.
The installment of such a loan is always lower than the sum of installments of liabilities that have been consolidated. It is possible thanks to extending the loan repayment period.
However, there is one problem that makes a consolidation loan not always the right (or rather possible) solution. Applicants for such a loan are analyzed by the bank in terms of creditworthiness and history. As you know, seriously indebted people (ie those who are most often interested in debt consolidation) usually with high creditworthiness or positive credit history will not meet.
In that case, do the indebted people have no chance at all to receive a consolidation loan? Not necessarily. Our chances of granting such a loan increase significantly if we use the services of qualified credit experts, ie, for example, Goodhold Finance. Thanks to their excellent knowledge of the credit market and also how you can negotiate with the bank, they will be able to help us even in a very difficult situation.