Applying for a loan is not an easy task, since there are many factors that we must take into account, especially when assessing our ability to pay the fees. We may have been cautious, but due to certain circumstances or unforeseen circumstances, we are unable to cope with the debt. From the Fine Bank blog, which once again offers us advice when requesting a loan, they recommend “talk to the bank as soon as possible and explain the situation”, to see what alternatives it offers us. What are these possibilities?
4 alternatives if I can’t pay my loan fee
Renegotiate the loan
As we have said, the first thing is to talk to our bank and see if there is the possibility of refinancing our loan. In this way, we are extending the return period of the same, so that we pay less monthly fee. The flip side of the coin is that the total refund could be increased by commissions; In addition to generating more interest, since the return period is longer.
Request a grace period
The period of lack of a loan is a clause in the contract that entitles one of the parties to defaulting it totally or partially for a certain period of time. For example, in the case of mortgage loans there is a lack of repayment ; which means that during that time the holder only pays interest, without amortizing capital, which translates into a lower monthly fee. There is also a total deficiency, a period in which no repayment fee or interest is paid.
The disadvantage of the lack period is that usually the expiration date is delayed, and as we have said this supposes the generation of more interests. It may also be that instead of being postponed, the cost of return is increased.
Request a microcredit
Although it is not recommended, there is the option of requesting a microcredit to pay off a debt, especially when it comes to specific and emergency cases, and for small amounts. It has the advantage of being fast and simple, but you have to value it well because there is a risk of over-indebtedness.
Debt reunification consists of grouping all our loans into one. This translates into the payment of a monthly amount whose amount is less than the sum of the monthly amounts that we would pay separately, in exchange for increasing the repayment term, which once again means paying more interest.
As main disadvantages of the reunification of debts we find the commissions for early cancellation of the debts, the rates that can be applied to us in the case that a mediating company manages us; and the cost of formalizing a new mortgage opening. Therefore, the cost of this alternative is high.