How do you repay a bank loan when you have no money? The situation may vary. For example, you got a loan but you lost your job or you have a sick relative and all the money went to treat him. In general, you simply don’t have money for your monthly installment. The question arises: “What if I have no money to pay back the loan?” The answer to this question can be found in the article. First of all, let’s try to talk about the consequences of defaulting a bank loan.
The main problems or consequences of defaulting on a borrower can be listed in descending order:
Loss of housing for which he took out a mortgage, debt collectors, bad credit history, broken relations with relatives and the loan guarantor. Later in the article you will learn how to deal with it.
What not to do when you can’t repay your bank loan
- Do not count on the debt disappearing by itself. Banks never forget about debts. Even if debt collectors do not contact you, this does not mean that they have forgotten you. Even when you think everything is fine, the bank charges interest and the credit history deteriorates. Report your problem on your own initiative. Banks usually appreciate this.
- Don’t disappear Trying to disappear is a very bad idea. If the bank sees that you are avoiding it, you can get to the database of unreliable borrowers. At the beginning you will feel the climate change, they will refer to you not as a customer, but a cheater. The sooner this happens, the sooner your contacts will be in the hands of debt collectors.
- Do not panic. It is known, the situation is not very pleasant: the debt is increasing, the commission is increasing, debt collectors are in contact. Remember that debt is only a financial problem, no one has the right to threaten your health and life, as well as offend you and your family.
- Don’t bring the case to court. If it comes to court, bailiffs will try to sell the property at a bailiff’s auction. You can lose half of your real value and still pay court costs and commission to bailiffs.
Can you hide and pay nothing?
Loop Loop. Sooner or later you will have so many debts that you won’t be able to pay them back. Interest increases every month. Such a loan can be paid to old age.
Remember: even if the customer has never violated the contract before, the bank automatically charges penalty interest for any delays.
- Calls from the bank. The consultants call first, but if the customer does not contact us and does not repay the loan, the matter is transferred to the Debt Collection Department.
- From now on, your Debt Collection Department takes care of your debt. Their main purpose is that you pay the loan in full and it doesn’t matter if it will also ruin your nerves.
- Debt collection companies and court. If debt collectors in the bank fail, the bank sells the loan to a debt collection company or passes the case to court.
- External debt collectors will threaten your guarantors. Usually their methods are more aggressive than the methods used by debt collectors in the bank. They can call you to work, write to friends on social networks, and even visit you at home.
- The court is the last stage. Fighting lawyers or debt collection companies is almost useless. After the hearing, bailiffs come to you and you can have property execution.
What to do if you can’t pay back your bank loan
A borrower who does not hide, informs about his financial problem, can contact the bank and take the situation under control.
Where to take money to pay back the loan
Option 1: Repay the loan with a quick loan
We assume that this is one of the fastest ways to get money and start negotiations with the bank regarding loan repayment.
Option 2: Relatives and friends
Before borrowing money from friends, make sure that you can 100% refund the right amount. It will be easier for you to ruin your relations with relatives than to pay off your debt yourself.
Option 3: Additional work
If you lost your job, look for additional earnings on the Internet, don’t forget to look for this main job.
If you have a permanent job, but your payment is not sufficient to pay off the bank loan – think about additional income. Of course, you need time to get extra income, but to speed up the process, you need to start now.