Due to certain difficult circumstances, it is possible that a borrower has difficulty paying the monthly repayment installments of his personal loan despite the fact that it has been contracted with hindsight on his finances. To avoid worsening his situation, he must quickly adopt certain reflexes, because a late payment can indeed have unfortunate consequences, and even lead to sanctions.
DELAY IN REIMBURSEMENT OF A LOAN: BEWARE OF THE CONSEQUENCES
In the event that the borrower is late in paying the monthly payments of his loan, the lender has many recourse. In the event that the monthly payments are not paid, the loan company will notably add fees to the amounts owed. If the late payment persists, the institution will bear interest at the annual rate of 20%. In the event of formal notice, action, petition, demand and / or prosecution, the customer must then pay an additional amount equivalent to 20% of the capital due as damage.
OUR ADVICE TO AVOID PAYMENT DELAYS
1 – Establish a provisional budget
To do this, gather the following documents:
Your latest payslips.
Your receipts, notice of due date or invoices: water, electricity, landline and mobile phone, Internet subscription, insurance, vehicle maintenance, and your current loan repayments.
Your latest income and local tax notice.
Your account statements for the last 12 months.
2 – determine your resources
Using the documents gathered previously, determine your resources:
Consult your current employment contract and your last payslips to determine the date and amount of your next salary.
Check your rights to social benefits.
If you receive a pension, write down the amount.
Finally, note any other cash inflow that may occur.
Once the calculation of the total amount of your cash inflows, you must then subtract all your expenses and establish your budget estimate, including the repayment of your loan.
3 – determine your expenses
Fixed and unavoidable expenses that are payable on a regular basis:
Rent and charges
- Real estate loan repayment
- Personal loan repayment
- Water / Electricity / Gas
- Telephone / Internet / Television
- Home Insurance
- Car Insurance
- Health Insurance
- Childcare expenses
- Current expenses:
- Personal hygiene
- Medical fees
- Gasoline / public transport costs
- Sporting and cultural activities
- Occasional or optional expenses:
- Furnishings and household appliances
- Repair costs, vehicle maintenance
4 – Analysis of your forecast table
You must then analyze the forecast table in which you calculated your resources and expenses. If the balance is negative, you will need to be careful and cut back on some expenses to avoid late payments on your personal loan repayment.
If your final balance is over $ 100
The amount of resources covers your expenses, your budget situation is good.
If your balance is between $ 0 and $ 100
Your budget is balanced, but you have little leeway and you may be able to further improve your budget by looking where savings are possible.
If your balance is less than $ 0
You spend more money than you receive. Your budget is out of balance and you are accumulating debt. You need to restore your budget, reduce certain expenses or, if possible, increase your income.
5 – Negotiation as a last resort
To avoid the consequences of late repayments and therefore the implementation of measures by the lender, be sure to inform the company as quickly as possible in the event of financial difficulties, and in particular from the first late payment. This will give you a good chance of getting help from an advisor from your creditor to resolve the issue. With your advisor, you will surely be able to negotiate certain adjustments in your loan contract, the time for your financial situation to return to normal