You have a loan, but you don’t have enough money to pay it off. Common situation? And it doesn't matter for whatever reason: they made an impulsive purchase, didn't calculate their own budget, or suddenly lost their job. It is important how to find the right way out of this situation. And here there are at least 5 legal ways to reduce the burden on the family budget.
Extend loan term
This is perhaps the easiest way to reduce your monthly payments. But you need to understand that the longer the loan period, the greater the amount of interest on the loan will have to be paid. If the increase in the total amount of the overpayment does not scare you, then you can ask the bank to prolong the loan.
To do this, you need to come to the bank's loan officer and clearly name the amount above which it is now impossible to make payments. If the bank gives the go-ahead for such a change in the loan agreement, a new payment schedule will be drawn up. By the way, in most cases, such a decision will be approved, since the bank does not want the loan to go into the category of problem loans, and monthly payments have stopped coming altogether. The chances of an increase in the loan term also increase if the loan is secured by collateral, for example, an apartment.
Refinance a loan
Refinancing is a much more profitable way to reduce the amount of monthly payments, since you can count on more favorable credit terms. In other words, you need to take a new target loan to repay the old one. There is no need to be afraid of such over-lending. If you can find a profitable loan program in another bank (the interest rate on a new loan should be 3 or more positions lower), then the overpayment for such a loan will be less. If you wish, you can also adjust the loan term. Let's say that the old loan had to be paid for another year and 7 months, and the new one was taken for 2 years. As a result, the amount of the obligatory monthly payment to the bank will decrease.
Defer payments
It is not always possible to find a favorable loan offer in another bank. And there is nothing to pay the loan with today. How to be? You can ask the bank to defer payments. True, you will have to argue your position: to provide documents that testify to the deterioration of the material condition. This can be a copy of a work book (transfer to another position, reduction), any certificates confirming the need for expensive treatment, education of the child, etc. If the bank will meet halfway, then maybe:
- a deferral of the main body of the loan was provided, but interest on the loan will still have to be paid;
- a fixed amount is set (for example, some percentage of a monthly payment).
It is important to pay the set amount on time, because if there are delays in payments, a penalty may be charged, according to the originally approved schedule of payments on the loan.
Change loan currency
Let's say the loan would be taken in dollars or in euros. And due to fluctuations in the exchange rate, and even the need to pay a commission for currency conversion, the amount of loan payments becomes unbearable. Frankly, banks do not often change their lending currency, as this means a decrease in their projected profits. But it's worth a try. After all, if it is possible to re-register the loan for ruble, then the amount of the monthly payment will decrease, and moreover, it will not depend on currency fluctuations. That is, the borrower will definitely win.
The case is small: to convince the bank to change the currency of the loan. In addition to the appropriate application addressed to the bank manager, you must also prepare a certificate stating that the borrower is no longer able to pay the existing monthly installments. And since the bank's client receives his salary in rubles, it would be advisable to pay the loan in rubles. True, in practice, it is rarely possible to change the loan currency. Unless the borrower has a completely hopeless situation.
Go to court
Most borrowers try not to think about the possibility of court hearings, for some reason they have an extremely negative impression. Meanwhile, it is in court that you can achieve not only an improvement in credit conditions, but also a complete write-off of the entire amount of accrued interest! Experienced lawyers advise not to wait for the bank to go to court. After all, specialists of a credit institution will first try to collect funds in other ways, and it is not a fact that the case will not fall into the hands of collectors. Therefore, it is most reasonable to independently prepare a statement of claim. This has several advantages:
- as soon as the case is registered in court, the accrual of interest on the loan and penalties for late payments are immediately suspended;
- if there are good reasons (a significant change in the financial situation, which can be documented), the court may oblige the bank to renegotiate the loan agreement on new terms, which are naturally more beneficial for the borrower;
- in some cases, it is possible to write off the entire amount of accrued interest, that is, the borrower only has to pay the body of the loan - this is the amount that he borrowed.
It is only important not to avoid court hearings in order to prove yourself a responsible borrower. And then the court can become that lifesaver that will solve seemingly hopeless credit problems.
In a word, there are options for getting out of the impasse, you just need to want to find them, and not hide from the bank and not evade the obligations you have undertaken.
When people apply for a loan from a bank, they often forget about the financial burden on their shoulders. In addition to household monthly expenses, you will have to regularly repay your bank debt. And more often than not, the debtor has to give more than half of all his income only to repay the loan. To avoid overpayments and reduce the burden, you should choose the right loan repayment scheme and know 3 simple ways to reduce loan payments.
Selecting a repayment scheme
The process of reducing loan overpayments depends on many factors., which have to be thought about even before the loan agreement is signed. Therefore, first you should study the credit calendar, which is drawn up in the bank and is necessary so that the borrower knows exactly how he has to pay off the debt for the entire period of lending. And what is equally important, choose the right loan repayment scheme. In the second case, there are two payment options:
- According to the annuity scheme - monthly deductions are divided into equal parts and for the same periods of time. That is, on a monthly basis, the borrower will give the bank the same amount for both the principal debt (the body of the loan) and the interest on it. During the entire loan period, nothing changes for the borrower - he must regularly deposit the same amount to the bank account until he fully repays the entire debt.
- The differentiated scheme is a little more complicated to calculate, but it is fundamentally different from the annuity payment. The bottom line is that at the beginning of the lending period, the borrower is charged a large amount of credit deductions, and as the term decreases, the amount of monthly payments and interest on them decrease proportionally. Simply put, the main financial burden falls on the beginning of lending and decreases as the debt maturity decreases. Therefore, the more borrowed funds the debtor gives at the beginning, the lower the interest rate at the end.
An example of how to pay 15,000 rubles monthly instead of 27,000 rubles. through the services of other banks.
According to the collection agency Sequoia Credit Consolidation, at the beginning of May 2014, the total amount of overdue loans to individuals amounted to 515 billion rubles. At the same time, the dynamics of this indicator has an extremely negative trend, for example, the increase in delinquencies in January - April amounted to 17%, a year earlier for the same period, the growth was 14%, and in 2012 - 4.3%.
One of the main reasons explaining the increase in delinquencies is the high level of debt load on the part of the population. Often late payments are due to the fact that several loans have been issued for one borrower, and he is simply confused about the amounts and timing of payments, and many banks do not notify borrowers about forthcoming payments, putting them before the fact of an accomplished violation of payment discipline.
This circumstance is confirmed by the statistics of Sberbank, so if in 2010 borrowers who had delays had 1-2 loans per family, then in 2014 there were already five loans or more.
What should a borrower who has a lot of loans and is no longer able to remember where, when and how much to pay?
One of the most effective ways to reduce your debt burden is refinance existing debt, that is, take a loan from one bank and send it to repay debt on previously received loans from other credit institutions.
How profitable is it?
To do this, consider the following example
Sergey Petrovich S... has loans for the following purposes:
| Apartment renovation | Buying a SMART TV | Buying a fur coat | Payment for a tourist voucher | Total | |
|---|---|---|---|---|---|
| Initial amount, rub. | 300 000 | 40 000 | 120 000 | 140 000 | 600 000 |
| Term, months | 24 | 12 | 24 | 12 | – |
| Bid, % | 21 | 49 | 42 | 23 | – |
| Payment, rub. | 15 416 | 4 283 | 7 473 | 7 332 | 27 031 |
| Remaining debt, rubles | 120 000 | 30 000 | 70 000 | 140 000 | 360 000 |
The average income of Sergei Petrovich is 50 thousand rubles. per month, that is, more than half of his salary is spent on paying off loans (this is already a critical indicator, optimally no more than 25-30% of monthly income should go away). Money is sorely lacking, and there is also a constant rise in the prices of gasoline and food, and one day he realizes: a little more, and he will not be able to service the existing debt.
But Sergei Petrovich does not want to spoil his credit history - firstly, he is a respectable citizen, and secondly, he has a dream: as soon as he repays all the loans, he will issue a car loan and buy himself a KIA Sportage car.
While watching your favorite show "My own game" in the ad unit, he saw an advertisement for a bank, which offered to issue a loan to refinance debt. Having become interested in this offer, he immediately calls the hotline, where they tell him what documents to take and where to turn. After submitting the required package of documents, he manages to get a loan on the following conditions:
- Amount: 360 thousand rubles.
- Rate: 27%
- Term: 3 years
- Payment: 14 697 rubles.
He used the funds received to close all the loans he had. Debt refinancing allowed him to almost halve the burden (profit 12,334 rubles per month). In addition to reducing the debt burden, Sergei Petrovich also received time savings: earlier he made payments on previously issued loans 4 times a month, now he will need to repay the loan once a month.
But it should be understood that the reduction in payment has been achieved by increasing the term, but this has a downside, so the overpayment on the loan will be higher.
Instructions for refinancing your loans
Let's leave Sergey Petrovich alone with his dream and consider the process of debt refinancing in more detail.
Step 1.
We decide on the banks in which you can get a loan for debt refinancing. To do this, you can use one of the search engines:
The options are:
Step 2.
Tip: We recommend that you contact the bank where you receive your salary or where there is an agreement on lending to employees between the bank and the organization in which you work. With this option, you can qualify for a lower rate.
Step 3.
Determine the size of the loan. To do this, you must understand what loans you will repay, and by adding up the balance of the debt, go to the required loan amount.
Advice: Carefully study the loan agreement, the possibility of early closure, find out if there are any commissions for this.
Step 4.
We collect the necessary documents.
The standard list is the same for all loan products:
The list of documents that are required if the goal is to close debt in third-party banks:
Step 5.
We are waiting for the bank's decision. Usually the application is processed within 2-5 days.
Step 6.
In the case of a positive decision on the granting of a loan, the funds are sent by the bank in a non-cash form to a third-party bank to close the outstanding loan debt.
Step 7.
After repayment of the loan, it is necessary to submit documents to the lending bank about the absence of debt, otherwise the rate will increase by 5%. The Bank of Moscow sets aside 30 days for this procedure from the date of the loan.
Step 8.
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Sometimes circumstances in life do not develop in the best way, driving them into difficult financial situations.Income decreases, payments begin to "eat up" most of them. Borrowers have difficulties with loan payments. How to get out of this situation with the help of special banking programs is discussed in this article.
How to reduce the loan payment amount
It is better to approach the solution of the issue even before non-payments and delays have begun. Contact the bank with a written application in which to indicate the reason for the difficulty. And to document a decrease in income, family circumstances, serious health problems - these reasons are considered by the lender as valid. A certificate from the place of work about a reduction in wages, a certificate of health status, copies of orders, etc. are suitable as documents. All papers are carefully checked by the relevant services of the bank.
Changing monthly payments downward is possible through restructuring and refinancing.
- termination of the old agreement and signing a new one with a change in credit conditions. Sometimes it is just drawing up an additional agreement to the current agreement.
- Pros - the amount of monthly contributions decreases.
- Minuses- the amount of overpayment on the loan increases, as well as the term for repayment of the loan.
Banks do not always welcome the debtor's desire to restructure the loan, since it is more profitable for them to receive penalties for delays. Another thing is borrowers with good credit discipline and a clear plan for getting out of a difficult financial situation. They can count on the loyal attitude of the lender.
The conditions of the bank depend on the policy it applies for restructuring client liabilities.
What if the bank is not ready to revise the terms of the agreement, refuses to section a loan for low monthly installments? The "light in the window" can be
... This is a new loan from another financial institution to repay an existing loan. - pros
Conditions for a new loan may be more favorable:
Reduced interest rate;
Small monthly installments;
Possibility to change the currency of the loan.
- Minuses
Loans with a maturity of less than 6 months and a debt balance of less than 30 thousand rubles, as a rule, banks do not refinance.
Notes:
- The presence of late payments is a reason for the bank to refuse refinancing and restructuring.
- Express lending programs do not provide an opportunity to reduce loan payments.
- Banks, as a temporary way, offer borrowers to take advantage of credit holidays.
- Loan restructuring is possible only once.
What documents are needed to reduce the amount of loan payment
An approximate list of documents that the borrower must provide to the credit institution:
- application form for reducing the loan payment;
- passport of a citizen (s) of the Russian Federation;
- loan agreement;
- documents on the balance of the principal debt and loan debt;
- collateral documents (for mortgages).
New loan payment schedule
If there is any inconvenience in making payments on the date set, the bank, at the request of the client, can appoint a new schedule. To do this, the borrower fills out a special standard application to change the date of monthly installments.
The new repayment schedule is also established by restructuring - by extending the loan term, changing the currency or replacing the usual repayment scheme with an annuity. The changed repayment schedule must be drawn up by an additional agreement to the loan agreement.
