Families and companies have many alternatives to obtain loans, some work quickly and may even be pre-authorized. Ideally, you should not resort to loans, but instead you need to have a considerable amount of money saved. If you do not have that savings and you have to supplement it with a loan, try to comply with the commitment that you establish with the bank or financial institution.
If you applied for a loan from a bank or financial institution, and then you cannot pay it back, it is key that you assume a responsible attitude and face it.
Eliminate unnecessary expenses like eating out, get up to use the public transpose, Photo: Pixabay.
1. The importance of the budget
If you organize your budget before requesting the loan, you can detect problems, if they exist, so that you make the timely payment of your debts. Then identify the segments of your expenses in which you can make reductions, ask your family for help to achieve it.
2. Sure you will find expenses in which you can make cuts
Eliminate unnecessary expenses like eating out, get up to use the public transport. With the increases in gas prices you will get a good saving if you stop using your car.
3. Reach an agreement with your bank
Contact your creditor and renegotiate your debt with him, try to extend the term to settle your debt without affecting your credit history. This attitude is good because you will set a good precedent that you are willing to pay.
4. Pay a debt with another credit
If you already have a debt with the bank, you can pay it by requesting another loan, do so if they charge you a lower interest rate for the new debt. This is known as refinancing or consolidating debt. If your credit history is healthy, try to keep it that way. If you have no other alternative, apply for a loan that will help you consolidate your debts, that way, you keep paying a single loan at a lower rate. If you default; That is, if it is impossible for you to continue making payments, it will be more difficult for you to obtain cheaper financing to get out of debt.
5. Make advance payments
If you cannot meet your commitment to pay the debt, see if your contract allows you to pay what you owe in advance without penalizing yourself. For that you can get money by selling your car or holding a garage sale to get what allows you to get out of your financial situation.
More information in our Credits Section.