This is a golden rule that sounds like an obvious fact: any credit subscribed must be repaid. However, unforeseen circumstances or temporary difficulties may make it impossible for you to meet your deadlines. What happens in this case? What are the sanctions? And what are the solutions to get out of this situation?
First unpaid: it can pass
After a first unpaid installment, your bank will send you a reminder letter that is an amicable reminder allowing you to catch up quickly without having to pay compensation. In general, the monthly payment is represented by the bank a little later.
Next unpaid: it gets rough!
Following two unpaid monthly payments, you will receive a formal notice from your bank which means the start of the legal action. If you repay the monthly payments due within 30 days after the formal notice, you will avoid the Francia Bank. Otherwise, your bank will report to the Francia Bank file credit refund incidents that keep the listings for five years. All banks have access to this file and this may prevent you from taking out another loan later.
After a lawsuit, you will be ordered to pay your due as well as late fees. The credit institution may request the repayment of all the principal and interest immediately. If you are unable to pay these debts, the court can authorize the bank to seize your property for repayment.
What are the solutions?
The first possibility is to negotiate payment terms with your bank. You can also apply for loan insurance if your difficulties are related to an illness or a period of unemployment. But if you have recurring difficulties making ends meet, perhaps it is time to study a more sustainable solution? Consolidation of loans makes it possible to combine several loans into one. The purpose of the operation: to extend the duration of the new loan in order to reduce the amount of the single monthly payment. A solution to give air to your finances. The repurchase of credit also offers a better readability of its repayments, and can even make it possible to obtain a better rate, in particular in the case of a regrouping of revolving credits.