Deferral of loan payment

According to statistics, about 70% of all Russian credit borrowers at least once, but faced with a situation where it becomes almost unrealistic to deposit monthly amounts set by a bank agreement. Moreover, the need to suspend payments arises in any bank. This includes clients of the largest credit and financial institution of the Russian Federation – Bank. This raises the question: how to get a loan deferment in Bank? This article examines situations and options for individuals only. Solving questions about the restructuring of a loan issued to a legal entity or an individual entrepreneur is a separate topic.

It should be warned that obtaining such a relief can be a very laborious process. The financial institution, on the one hand, is interested in the client retaining its solvency and fully paying the amount due, including interest. This goes to the plus of the decision, which is to confirm the postponement or change of the loan terms. But on the other hand, the bank is also interested in the borrower repaying the loan loan as quickly as possible. And preferably in the amount that was established in the conditions of the loan agreement. Therefore, it is still quite difficult to delay the loan at Bank. It will take a good reason and its documentary evidence.

Good reasons for the delay in terms of banks

Good reasons for the delay in terms of banks

Until recently, Bank supported a very convenient option for its customers. Without much paperwork and tedious proof of the need to suspend payments, almost any borrower could quickly issue a month deferment. That is, without any penalties, changes in credit terms and the accrual of additional interest, the client simply missed the monthly payment once. Such a short respite could help solve some minor financial difficulties and return to regular payments. However, this was before the crisis. Today, Bank has canceled this service. Therefore, in any case will have to go through thorns to achieve a delay. What reasons from the point of view of the bank are considered valid for the institution to suspend credit obligations or to restructure the loan? There are several:

  • loss of the main source of income, and in 90% of all credit situations it is wage labor for wages. Moreover, voluntary dismissal or dismissal for unfair work is not considered to be a valid reason. Only staff reductions, company closures or forced job changes, for example due to relocation;
  • temporary or permanent disability of the borrower (as a rule, the period of illness or disability and permanent medical care);
  • the need to pay for the treatment of a loved one;
  • the death of a family member (especially important if the deceased family member contributed a share to the general family budget);
  • childbirth and child support (up to the age of three);
  • the appearance of a dependent (for example, taking custody of a minor);
  • moving to another locality;
  • various force majeure circumstances that were independent of the client and caused damage (cars crashed in an accident, housing suffered from a fire, attackers cleaned the apartment, etc.).

Confirmation of a difficult financial situation with documents

bank

 

Apart from a couple of points, the rest, of course, will not bring joy. A person, even purely psychologically, may not be able to repay any loans there. But the main thing – all of these points entail an increase in financial expenses. Sometimes such that in size overlap monthly credit payments. In order to have real chances to defer payment or to restructure the loan, you will have to take care of documentary confirmation of the reason that has arisen. Judging by the reasons listed, the following documents may be needed:

  • a record from the employer in the workbook of a forced reduction, a tax certificate in the form 2-NDFL, which may reflect negative changes in the income of the client;
  • birth certificate of the child;
  • a certificate that a woman is on maternity leave due to the birth of a child;
  • death certificate of a loved one;
  • certificate of guardianship;
  • certificate from the doctor about the disease / certificate of disability – the borrower or his relative (it is desirable that all necessary medications are indicated, because if the drugs are expensive – this will also go to the client’s plus);
  • papers proving the change of permanent residence (for example, a change of residence permit in the passport);
  • documents proving unexpected material losses (for example, the accident report, the conclusion of damage assessment for the destruction of housing, etc.).

Credit Relief Options

Credit Relief Options

 

Bank may give a deferment of payment on a loan if it considers that circumstances really do not allow us to continue extinguishing credit debt. The problem is that Russia has not developed a clear scheme for suspending credit penalties, their change in favor of the client. How to take a deferment in an environment where banks have tightened their policies due to the crisis? This is problem. But in any case, the borrower will need to visit the bank, where it is necessary to fill out an application form with the corresponding request. Of course, you need a passport. And the document confirming the specified reason of financial difficulties of the borrower. It is recommended to do this immediately after making the last payment, that is, until the next installment remains for about a month. Since the application of the client, the banking organization will consider two weeks or even a little longer. Each bank has its own policy. This is especially true of private establishments. But in Bank to defer payment, if the circumstances are truly objective, it is quite possible. What options can offer employees of the institution? In general, there are five such options:

  1. A certain period, the borrower will pay only interest, and the body of the loan will not decrease. The main disadvantage of this method of deferred payment is that the loan itself will remain unchanged in amount. So, when the agreed grace period ends, you will have to start extinguishing the loan body, taking into account all the same interest. That is, there is a large percentage overpayment.
  2. A certain period, the borrower will pay only contributions to repay only the body of the loan, without a percentage premium. The option is quite convenient, since the principal amount of the loan is the main source from which annual interest is charged. But after leveling the loan body, there may be problems with the calculation of the interest that the client must pay. Some banks even used this method of deferment as a means of additional profit from customers, charging interest on interest. It is necessary in advance, together with the bank’s specialists, to accurately calculate how much will be left to pay at annual interest.
  3. The best and most desirable option for a borrower is to write off credit debt in general. However, officially and voluntarily, the bank rarely goes to such a thing for obvious reasons. For a financial institution, these will be 100% net costs. In rare cases, when the loan amount is small by banking standards (close to microloan), the institution may, as they say, “give up”. In a different way, credit debt is canceled only through a court decision. Or, after the expiration of the statute of limitations (3 years), but with it, too, a lot of problems arise, which are not worth delving into now.
  4. Although the “vacation for a month” program that was already mentioned was canceled, but on an individual basis, Bank occasionally gives customers a breather when you don’t need to pay anything at all. Terms of such “holidays” vary from one to several months.
  5. The latter method is the most diverse. In principle, this is debt restructuring. Bank loan may be revised in all respects. What changes in the conditions of lending specialists are able to offer the borrower in order to relieve him of the financial burden? First, the interest rate reduction, which will reduce the size of monthly payments. Secondly, the change in the frequency of contributions. For example, not every month, but every six months. Sometimes it is more convenient for customers to deposit larger amounts, but less often in time. Thirdly, a partial cancellation of the amount of the debt, i.e., a decrease in the loan body. Usually, banks carry out such actions at the expense of refinancing. Fourthly, an increase in the loan period, i.e. a stretching of the loan over time, which also reduces the amount of monthly payments. But there are limits. Consumer credit can not be stretched for longer than 7 years, and mortgage – for 35 years. Finally, fifthly, the bank can leave the loan terms the same, but no penalty interest will accrue for any delay. Debt under such conditions will accumulate only purely from monthly installments.

The main thing is that when it comes to deferring payment on a loan at Bank, all applications are considered on an individual basis. There is no single program that addresses the problem of borrowers who are in or near an insolvent state. It is important to provide only authentic information. Otherwise, the bank, finding a discrepancy, can not only not meet halfway, but also file a lawsuit with a statement of fraud. This article discusses all the main points regarding the revision of the loan for those customers who find themselves in a difficult financial situation. At least within the framework of one financial organization – Bank. Although the general scheme is the same in all banks.

Take a payday loan to improve your credit history

Today, more than 90% of Russian families at least once took a payday loan or loan to get out of a difficult financial situation or make a major purchase. In order to afford a car or a new apartment, you will most likely need to get a payday loan. To do this on the best conditions you need to have a positive CI. And if you have far from the highest score, you can take a payday loan to improve your credit history.

Any microloan company sends all data relating to open loan agreements. All movements of the borrower are noted in a special report and quite often, sometimes more often than in a bank, are sent to a credit history bureau. Therefore, you must carefully monitor your financial situation and in no case do not make delinquencies. It’s simple: if you take a small amount, but do not make payments under the contract on time, your score decreases, and if you take a large amount and close the loan on time, your score will be higher.

Where to get a payday loan to improve your credit history?

payday

Today, many MFIs can lure customers to take out loans to improve their credit history, and this is a truly sought-after service in our time. But you always need to be alert, especially when it comes to signing a payday loan agreement. Before contacting the organization, check the company in various ways. Ask your friends, maybe they have already worked with the company, read reviews and make sure that the organization is on the list of officially registered MFIs on the Bank of Russia website. If a company is on the list and is a member of one of the official SROs (self-regulatory organizations), then it can be trusted and with this organization try to improve the credit score.

One of the most effective tools for improving CI is taking a small payday loan.

payday loan

Often, the borrower does not even use the money taken and he has already prepared the amount to be added to close the contract. But keep in mind, if you plan to repay such a payday loan ahead of time – this may not work. And the point is not that the credit organization will not send such data to the CII, but the fact that such actions may not affect the credit score. And if the bureau finds such systematic manipulations, then altogether, you may underestimate the score.

Improve your credit history

credit history

Therefore, take a payday loan to improve your credit history correctly. Assess your capabilities, the company in which you plan to take a microloan and carefully plan all payments and closure of the contract. Then do not hesitate to ask the company when the data will be sent and after what time you can see the result.

Cash loan for individual entrepreneurs

Business expansion is a complex, multi-level, and ever-changing thing. In the small business sector, where non-current assets cannot yet serve as investment funds, the only way to find such funds is lending. But it is different. Target loans are good in their flexibility for the specific needs of the business. However, this is also their limitations. Practice shows that cash is the most flexible means. Therefore, a cash loan for individual entrepreneurs is the best way to invest in a business.

But getting material money directly from the bank to an individual entrepreneur is even harder than a targeted loan for development and / or expansion of a business, which is never issued in cash, but is transferred directly to the company’s settlement account. 

Conditions for obtaining a cash loan for entrepreneurs

Conditions for obtaining a cash loan for entrepreneurs

These conditions apply to both the individual entrepreneur and his work:

  • transparency, full legality and a clear business structure, because without this it is impossible to objectively evaluate its profitability;
  • income level should not only cover costs for each business period, but also leave at least a small net profit;
  • registration in EGRIP;
  • registration in the tax service;
  • in different banks in different ways, but the entrepreneur must have at least some work experience (the main thing is that the business should not be open yesterday);
  • almost always estimate the scale of current and non-current assets. Larger firms are thought to have a larger “survival margin”;
  • the absence of a bad credit history, and if there is another – the obligatory participation of guarantors who have proven their financial soundness and “credit purity”.

As you can see, the requirements are pretty harsh. , of course, tend to include new lending programs in their list of services, but the situation has not changed much at the root. So, many individual entrepreneurs cannot take a loan on an IP, because they are forced to choose not a general or simplified taxation system, but an UTII or patent system, under which banks cannot fully verify the stated level of income. About net profit and no speech. Already in the basics of economic theory it is said that only monopolies can have a net profit. It is clear that such conditions are set rather not for real use, but for, so to speak, intimidation. Like, think again before asking us for cash for your business. Well, the other requirements are quite standard.

Review of credit programs and banks

Review of credit programs and banks

Currently has about ten different small business lending programs, each of which has its own purpose: starting a business, supporting a business, expanding a business, and so on. For example, one of the most famous is Business Start. The name speaks for itself. here offers its financial services to those who have never been an entrepreneur, but want to try to become one. But within the framework of this article, this loan is not particularly interesting, since there is no cash here – all funds are transferred to the account of a young company for subsequent use according to the intended purpose. Much more interesting credit “Trust”. After all, such a loan can be taken without confirming the intended purpose. The second plus is the lack of collateral. The terms of the Trust are as follows:

  • the lower limit of the loan is 80 thousand rubles, the upper – 3 million rubles;
  • terms – from 6 to 36 months;
  • interest rate – from 19% to 19.5% (if the loan is taken for longer than 2 years);
  • alternative to pledge – the guarantee of individuals;
  • The whole process of obtaining a loan does not take longer than 4 days.

However, the average interest rate in in the field of lending to individual entrepreneurs is slightly higher and amounts to 22%. Despite the existing limit in “Trust”, the maximum loan amount is limited only by the material capabilities of the individual entrepreneur. also works with clients with a bad credit history. In , business lending does not exceed 48 months.

A variety of loans for business is not inferior to . Here you can get a large multi-purpose loan “Investment”. True, he still has limitations. The entrepreneur has the right to spend the received money only on the development of his enterprise. But in this framework, the borrower is given complete freedom of action (the acquisition of current and non-current assets, the purchase of new licenses, etc.). In to take a similar loan can be on the following conditions: 

  • interest rate – 13.5%;
  • the minimum amount is 850 thousand rubles;
  • crediting period – up to 10 years;
  • you need a deposit, but it is enough that its amount (in monetary terms) is 85% of the amount borrowed from the bank;
  • money can be taken at once or issue a non-revolving credit line;
  • To get a loan, you must pay a commission of 0.3%.

As you can see, adheres to a much longer lending period. Here, individual entrepreneurs can take a loan for up to 10 years. At the same time, the interest rate at for most business loans is almost the same as at – 21.9%. The age limits that a client should fit into are similar to as in . That is, from 21 to 60 years (at the time of debt repayment). The only thing that in some cases can increase the upper age limit (up to 75 years). In this practice is not observed. However, in it almost always refers to employees. In the business lending sector everything is much stricter.

Bank in terms of providing cash to businessmen is inferior to and . The entire business lending sector here is represented in only two areas: overdraft and non-earmarked loan. Overdraft in this article is of no interest, since it is associated with the creation of a negative balance of the current account and a priori cannot be cash. There are only non-earmarked loans, which, in essence, are a kind of consumer credit. But the interest rate at Bank is lower compared to and – 17%. Of course, for an entrepreneur the best option is a consumer loan, which is issued only in the form of cash. However, there are several difficulties:

  1. Giant interest rate. Especially for entrepreneurs. Therefore, it is recommended, if there is an opportunity, not to declare business at all, but to take a loan as an exclusively physical person for personal needs.
  2. Consumer loans are a priori small. Such a loan does not exceed 300 thousand rubles. For business this may not be enough. As an option – take a few consumer loans in different banks. But there is always the risk of “lightening up” (open credit history). Then the bank will probably refuse to deal with such a borrower at all.
  3. Due to legal confusion, many banks began to segregate customers – legal entities, individual entrepreneurs, and individual entrepreneurs. Businessmen, despite their dual status, are no longer regarded as physical persons. Consequently, are not eligible for consumer credit.

List of required documents

All banks require approximately the same documentation: 

  • personal documents of an entrepreneur (application form, passport, military ID for men younger than 27 years, TIN, etc.);
  • extract from EGRIP on registration as an IP;
  • declaration from the tax service for the last period, form 3-NDFL (six months, a year, two years – depends on the chosen tax system);
  • documents confirming the property right of the borrower to immovable and / or valuable movable property (if any);
  • part of the accounting, showing the size of working capital;
  • if a business needs licenses and permits, then all such papers will also need to be provided to the bank.

Additional documentation is discussed in person on an individual basis.

Amounts, dates and where the most profitable interest

Amounts, dates and where the most profitable interest

 

This has already been mentioned in the text. In general, it is difficult to say where it is most advantageous to take a loan. Everywhere there are pros and cons. Both general and specific for a particular bank. In addition, the conditions do not stand still. Banks adapt to a changing economic situation. changes the interest rate, – loan terms, Bank – the programs themselves and so on.

Entrepreneurs interested in long-term projects should go to with its programs for 10 years. But those who need the lowest possible interest rate will be more suitable for Bank with its 17% (although objectively this is still a large percentage). And those who need short-term loans will find a large selection of the latter in . However, this does not mean that has nothing to offer for long-term investment projects. One of the goals of this article was to show that entrepreneurs can get cash in different banks. Only each bank has its own specific details. Also, the presented text is intended to familiarize the relevant circle of persons with the difficulties that may arise when a person takes part in a cash loan.

P2P loans (lending people to each other): what is it and is it possible to use it

P2P economy (when people buy goods and services directly from each other without intermediaries) in the modern world is gaining momentum. Previously, this tricky foreign word could be called a situation where a bunch of onions were bought not from a supermarket, but from a grandmother at a market. Now, in connection with the improvement of communication technologies via the Internet, P2P economy has received an additional impetus to development.

After all, this is nothing more than a platform where people can buy any goods from each other (from t-shirts to wardrobes), used cars, rent or buy an apartment, and order a service (freight, tutoring).

Today we will talk about P2P lending services. These sites offer people the opportunity to take a cash loan not from a bank or an MFI, but from another person. Do such services exist at all, what progress have they achieved, what problems do they face?

The emergence of P2P lending

The emergence of P2P lending

The first online credit service for citizens of each other appeared in the UK in 2005.

The idea of ​​mutual lending through the Internet is very simple. The online service is designed to attract investors and borrowers, to determine the degree of risk of lending to potential customers , to make cash transactions.

At the same time, the website has no such expenses for maintaining a network of branches and paying staff like a traditional bank. Therefore, the P2P platform has the ability to offer the borrower a loan at a lower interest rate. And an investor who provided money to the service, as a result, will receive a greater income than from placing free funds on a bank deposit.

Mutual lending services began to grow rapidly. The services of the same Zopa. com 7 years after the start of the project (in 2012) used more than 500 thousand Britons . The total amount of loans issued by this site has exceeded 200 million pounds .

The success of P2P projects in the field of lending

Issues in mutual lending

The rapid pace of new types of lending began to develop in the United States. The largest American P2P lending platform called Lending Club began its work in 2006. As of 2012, over 115 thousand loans totaling more than $ 1.5 billion were already in its service.

What caused such increased interest of investors and borrowers to new projects? The average rate on consumer loans in the United States for borrowers with a good rating ranges from 11 to 15% per annum. And if an ordinary American on a P2P site can get a loan at a rate 0.5% lower than at his bank, he will feel as if he won the Olympics.

Cooperation with P2P platforms is also beneficial for investors and investors. The rate on bank deposits in the United States is about 1% per annum. Placing money on mutual lending sites brings investors up to 10% income.

But at a particularly rapid pace, the P2P lending market began to develop in China. The first Internet platforms connecting investors and borrowers appeared in the Middle Kingdom in 2007. And by 2016, there were more than 5,000 such online sites . For comparison, let us cite the following figures: in the UK (in the homeland of P2P lending) there are about 100 sites of P2P loans, in the USA – about 300. The total amount of loans issued by individuals to their fellow citizens in China in 2015 was more than $ 52 billion .

The reason for such an interest in obtaining loans through the Internet is that Chinese banks simply cannot afford to lend to the vast population of their state. For people living in the Chinese hinterland bank lending is inaccessible. The only possible option for obtaining the necessary loan for an ordinary Chinese was an appeal to the Internet service.

Thus, by 2016, the impression was that citizens’ lending to each other would greatly press traditional banking services on the market.

Issues in mutual lending

Issues in mutual lending

However, the seemingly attractive projects for lending to each other by citizens also revealed pitfalls. The new field of activity was not regulated in any way by the law and the state , which created the basis for numerous abuses .

In the US, a bolt from the blue took place in 2016, when the founder Renault Laplanche was fired from the Lending Club. It turned out that he and his family members themselves took loans from their organization through a special investment fund in order to improve the statistical indicators for investors. In order to correct statistics and demonstrate the growth in the number of loans issued, many loans changed the date of issue.

 

After the scandal, the company’s shares collapsed by 50%, and investors lost confidence in such projects . Of course, there are still P2P lending sites in the USA. But they are considered, for the most part, as a modern method of attracting customers to the use of traditional banking services.

Not the best way things turned out for P2P-services in China. So, in November 2015, the Chinese site Rong Zuan Dai managed to attract several hundred investors’ money to the promise of paying high interest, and disappeared in a couple of weeks. Another well-known project turned out to be a banal financial pyramid. The loans that he “issued” to borrowers turned out to be fiction. In fact, the owners of the site paid interest from the funds contributed by the second and third waves to the first wave of investors. As a result, the project predictably collapsed. At the same time, 900 thousand investors suffered, cumulatively investing about 11 billion dollars in the site.

In 2018, China even held street protests of investors deceived by the P2 P-platforms . As a result of the outflow of investors from 5,000 sites, only 1,500 sites remained active. And the Chinese government was forced to regulate the market for P2P loans.

P2P lending in Russia

P2P lending in Russia

In Russia, mutual lending to citizens has not received such development as in the UK, the USA or China. The account of sites where ordinary people offered loans to each other , went not on thousands or hundreds, but literally on units .

Solvent and disciplined citizens of our country are accustomed to issue loans in banks at an acceptable rate of 15-19% per annum. Potential customers of the first domestic online services of P2P loans were the same people as borrowers of numerous MFIs. These are either citizens with a low level of income and a large number of existing loans (and, accordingly, with a high risk of non-repayment of the loan received). Or cunning, who initially were not going to give money easily received through the Internet.

Young Russian Internet projects did not have effective tools for determining the level of reliability of potential borrowers and returning unpaid loans. Investors of Russian P2P services quickly faced a high level of loan defaults.

The return of the funds lent through the court turned out to be a very lengthy and troublesome procedure. And a few years after the start of operation of such services, private investors were completely disappointed in them.

So, one of the first Russian projects on P2P-crediting opened with the assistance of the well-known Internet portal. The project was founded in 2010. The site has not issued loans since 2016. The reason is the increased level of defaults (non-repayment) of loans.

Service retrained in the usual ICC with loans at 1.5% per day and tough ways to work with overdue microcredit. The threshold of entry for private investors into this organization has increased from 50 thousand rubles to 1.5 million.

In general, P2P economy is developing. However, the idea of ​​mutual lending by citizens of each other in practice faced serious problems. Among them are:

  • the absence of a legislative base and control by the state, and, as a result, the presence of serious abuses;
  • unavailability of mechanisms for checking borrowers on solvency;
  • the complexity of the procedure for collecting arrears.

At the moment, we are not able to recommend you a P2P lending service, in which you could borrow money from a private person at a lower percentage than at a bank. These innovative startups have not yet succeeded in replacing the conservative but reliable banking system. So, if necessary, you should best apply for a loan to one of the well-known Russian banks.

What to do if there is nothing to pay a loan: useful tips

The situation when there is nothing to pay a loan for, for many Russians, alas, is a reality. What to do when debts multiply like a snowball, all the phones cut off collectors with threats, and banks start calling friends and relatives to pay off their debts? If you look at everything, it turns out that many of the described actions of creditors are illegal, and the payer has very real chances to get a convenient debt restructuring.

Negotiations with creditors

If there is nothing to pay a loan, then the first thing to do is contact the banks you owe. Do not pull up to the last and come to the office on the day of payment, or even a week after the delayed admission. The bank is interested in the return of money no less than you. And if you apply in advance, you can find many quite acceptable options for getting out of an unpleasant situation.

So, the most obvious and simple are the following options:

  • Negotiations with creditors is the first thing to do in this case.

    credit holidays – deferred payment for an optimal period until the borrower has money;

  • granting of a “grace period” – for example, paying only interest or, conversely, a loan body within 2-3 months;
  • reduced payments — for example, making only half of the debt this month, and 1.5 times the size of the regular payment next;
  • postponement of the payment date – for example, a few days later, if the enterprise has changed the date of salary issuance;
  • refinancing a loan with the ultimate goal of reducing the monthly payment – most often by increasing the repayment term (for example, from 5 to 7 years).

It is better to apply at least a week before the next payment. The bank will have time to consider many different options and make a mutually beneficial loan repayment decision. It is also important to know what will happen if you do not pay the loan at all?

In order to be convincing when talking with the loan officer and the head of the department, you should attach documents showing your financial distress and that you have nothing at the moment to pay the debt. It can be a variety of papers, for example:

  • a reduction order and a copy of the employment record with a corresponding record;
  • birth certificate of the child;
  • death certificate of the co-borrower or a close relative, at whose expense the debt was partially repaid;
  • the claim in court and the application for suspension of work, if the employer delays the salary;
  • certificate of disability;
  • an extract from the medical record, indicating that a serious illness has occurred in the borrower or an expensive operation has been conducted, as a result of which his working capacity is temporarily limited;
  • documents on damage to income-generating property, such as a rental car.

It is good if you have not made a single delay before contacting the bank and have been paying the loan for a long time. In this case, employees are more willing to meet you, especially if you confirm the reason for your temporary insolvency.

But even if a few delays were made on the loan and fines began to “drip”, then there is no need to hide. Negotiations (or at least a demonstration of readiness for them) is the first step towards establishing normal relations. It is possible that the bank, seeing your willingness to pay the loan further, will make concessions and write off the accrued interest. During the negotiations, you can achieve a more convenient payment schedule.

Loan refinancing – a simple way out of a difficult situation

Loan refinancing - a simple way out of a difficult situation

If your financial condition is shaken only temporarily, and there is a chance that everything will be restored, then it is advisable to do a refinancing of loans. Simply put, it is a collection of many small payments to one. If you perform this operation correctly, you can get a lot of advantages:

  1. The interest rate decreases, and with it the overpayment.
  2. Reduced monthly payment.
  3. You can choose a convenient day to pay off.
  4. Instead of multiple payments, one.

The most convenient way to refinance is to find a special program in a large federal bank. The institution’s specialists will help you collect all the necessary documents and negotiate with third-party banks. In fact, you will close all other debts with a new loan and you should remain with only one organization.

Despite the fact that outwardly such an operation looks tempting, not everyone is able to achieve refinancing. To obtain bank approval, the borrower must meet strict requirements:

  • not have a single delay on current loans;
  • his income should be enough to service the new payment;
  • It is necessary to provide the same security as under the terms of the previous agreement.

Thus, refinancing, in the understanding of banks, is the granting of a loan to a trustworthy payer, and not “rescue of drowning people”. Debtors in most cases, approval does not shine.

Another thing is re-lending, i.e., renegotiating the terms of a valid loan. As a rule, this is an extreme measure for debtors who find themselves in a difficult life situation. Most often, the loan term is simply extended to reduce the monthly financial burden. Sometimes the bank goes for the forgiveness of fines or allows you to pay them later, if there is nothing to pay now.

Another way is to make independent refinancing. Simply put – take a new loan on the best terms and pay off all existing debts. Here it is important to take into account a number of points:

  • if you have so many loans, then the new loan may simply not be approved, so you will have to either confirm the presence of additional income or issue a loan to a third party;
  • it is worth taking a new loan if it is cheaper than the old one by at least 2 percentage points, otherwise it is simply not profitable;
  • the loan must be taken for the same period as it remains to pay as before – otherwise, with an external decrease in load, the actual overpayment will be more;
  • repay first and foremost credit cards and loans with a rate above 33% per annum, regardless of their size;
  • Please note that you may have to take out insurance – order the amount of the new loan a little more than necessary.

Re-lending issues should be treated carefully. The slightest mistake can cost a lot of money, and instead of reducing the credit load you get even more debt.

How to deal with collectors?

If you have not paid the loan for a long time, and collectors are attacking you, then it is too late to negotiate with the bank. Your goal is to build a competent interaction with those to whom the credit institution transferred your debt.

First, it is necessary to clarify how legitimate the “sale” of debt is. Usually all the rules of the transfer of obligations prescribed in the contract. Without notifying the borrower, banks are not allowed to do this.

Secondly, you need to know whether the transfer of debt occurred, or the bank simply “asked” collectors to influence the debtor psychologically. Sometimes the borrower may be called bank security service, seeming to be collectors.
Thus, when you contact the collector you need to know a lot of information:

  • his name and position, the name of the organization he represents;
  • loan agreement number and the name of the bank that “sold” your debt to it;
  • total debt and monthly payment;
  • details for the payment.

The data provided by the collector must match the data in your copy of the contract. Collectors do not have the right to increase the amount of payment due to fines or change any conditions: to increase the interest rate, to renew the contract, etc. If you have already transferred the debt to the collection agency, then they have the right to charge only what is provided for by the current credit contract. They want more – let them make another agreement with you.

With regard to information about the agency and its details – it is necessary to verify the organization. Sometimes it turns out that debts are demanded by people who have no relation to collectors or banks.

In most cases, the callers behave in a boorish way, threaten, call space fines. It is recommended to record the entire conversation on the recorder with prior notification of the collector – then they behave more decently. You need to know that the law protects you, and collectors can not:

  1. Threaten you personally or your family – criminal liability is provided for this, which you can notify the caller about.
  2. Insulting you – for this, too, provided an article.
  3. Require additional amounts – penalties and interest for the use of the loan, and so spelled out in the contract, no one else can get from you.
  4. Require immediate repayment of debt, otherwise threaten with the withdrawal of an apartment, material assets, a ban on traveling abroad, etc. – if you are obliged to pay, then only under the terms of the contract, and the court decides all matters related to confiscation and bans but not a collector.

The best way to talk is this:

  • quietly listen to the collector;
  • find out all the information about it;
  • report the inadmissibility of threats;
  • refuse to pay the accrued fines, but agree to pay the debt;
  • propose to resolve the issue in court.

Similarly, you should act if you call from the security service of the bank and threaten to confiscate property. First of all, it is necessary to propose to settle the conflict before the trial by refinancing. In case of refusal, you must send a revocation of the permit for the processing of personal data to the bank by registered letter (then the institution will not be able to transfer the debt to anyone), as well as a repeated offer for the pre-trial settlement of the dispute.

Attention: if the contract specifies collateral, such as an apartment, the bank may well have it at its disposal for failure to pay the loan. However, this cannot happen arbitrarily, but only by a court decision.

Going to court

This is what you should strive for if banks and collectors overdone their threats and fines.
If your loan was handed over to collectors, then the court is the only way to achieve a favorable outcome of the situation. Collectors, while threatening such proceedings, are in fact afraid of court hearings. In many cases, they end up with the fact that all debts are written off from the borrower, and the amount of payments on loans is determined in the amount of no more than 40% of his income.

You can not wait until the bank goes to court, and act proactively. In this case, it is you who will dictate the terms of the future loan restructuring. Freed from paying the debt, definitely, will not work, but it will be possible to produce it according to a convenient scheme. Be sure to demand the cancellation of fines and penalties, especially if their size has already exceeded the amount of debt.

Reassure the judge that you do not refuse to pay the loan, but are temporarily unable to do so. Attach the documentary evidence of your temporary disability, show that you tried to negotiate with the bank and collectors before filing a claim.

How to save property if you have nothing to pay?

How to save property if you have nothing to pay?

If the amount of debt is impressive, and you have nothing to pay, the bank can send a penalty to your property. Therefore, in order to protect your apartment, car, household appliances, etc., you should prepare: 

  • find at least some work to show the presence of permanent income;
  • try to accumulate the maximum amount in cash so that you can pay off part of your debts and not pay off your property;
  • give expensive property to someone from close relatives or friends;
  • Prepare evidence that the property is the tool through which you earn money (for example, you earn money as a private cab driver or freelancer using a computer and printer).

Consider a number of points:

  • any transactions during the year preceding the court session may be challenged and declared null and void if the court decides that you deliberately dispose of the property;
  • the apartment, which is the only housing, can not take away;
  • they cannot take away also personal belongings, children’s things and objects of a specific purpose necessary for life activity (for example, medicines, wheelchairs, etc.);
  • property is sold at auction at prices well below average, so if you don’t need something, it’s better to sell it before the process and close some of the debt.

Do you need bankruptcy?

Do you need bankruptcy?

With the issuance of the law on bankruptcy of individuals, many debtors, if they have nothing to pay the loan, have wished to take advantage of the new opportunity. You have to decide if you need it. Bankruptcy is usually the last resort when the amount of debt exceeds all reasonable limits, and the payer has no way to pay it off. In addition, such a measure can be applied to individual entrepreneurs who are responsible for their obligations with personal property.

Bankruptcy does not mean debt forgiveness. If a person is declared insolvent financially, then all his property, including an apartment and transport, will be sold to maximize the repayment of loans. First of all, the pledged property, cash and securities will be seized.

In addition, the bankruptcy procedure itself involves a lot of costs: for the arbitration manager, for holding an auction, for appraising property, etc. The bankrupt will need to pay them at his own expense.

After the termination of the process, the impoverished citizen will be subject to certain restrictions for the next five years. So, he will not be able to:

  • get a loan or act as a guarantor;
  • set up a company or open a bank account for individual entrepreneurs;
  • hold a management position;
  • enter the military or civil service;
  • travel outside the country.

It is much easier and more expedient to agree with creditors on a mutually beneficial debt settlement scheme. If the world did not work, then in court. But it is better not to declare bankruptcy.