How to survive when debt has become too much to handle


Pay their debts not only lannisters from the "game of thrones", but anyone who solves their problems with loans. If there is no money in the kingdom for monthly payments, it is not a disaster, but can become it.

I say how to be when debt has become too much.

Refinance loans.

Refinancing is when one loan is repaid by the other. People go to refinancing to ease the credit burden slightly. It is possible to refinance in the bank where the loan was taken, but you can go to another one. If there are multiple loans, they can also be refinanced and combined into one. The proposals of banks of refinancing depend in particular on the rate of the central bank.

The bank, in which a person took a loan, is the right not to approve the refinancing: the changed rate is not a reason for the bank to offer more favorable conditions. Then you can try good luck at another bank. In refinancing, it can be based on credit history, so before you apply, it is better to study your own.

Before signing the contract, read its terms: what are the payment terms, how many month, how many month you have to pay, what interest rate, are there additional payments? In general, take the habit of always carefully read the conditions.

Restructuring loans

People often trust refinancing and restructuring, but these are different things. Restructuring is when the terms of the current loan are revised and it is impossible to switch to another bank.

You can turn to this procedure if there are financial difficulties, and the loan is heavy. The bank can meet and change the terms: to write off the accrued interest, lower the monthly payment or the interest rate. Terms are different for all banks. Restructuring is not always profitable: the bank may maintain a percentage, and the loan run up, and if the borrower matches such terms, he may overpay.

Do not take new loans and microloans

The debts grow up like a snowball. If there is no money to pay with the bank, take a new loan – that is the last thing you can do. The result will be going out of interest, and monthly payments and principal debt will grow.

And no more, it is impossible without conclusion to contact mfis, no matter how appealing looked. In such organizations, gigantic interest, cunning commissions and fines, so you can easily fit in inhuman debt and pay something at all.

Don't hide from the bank

To be lost and not respond to calls from the bank – a bad idea: the loan will not be forgotten, the debt will not dissipate. Problem the borrower bank makes a blacklist: it reduces the chances of agreeing to the new loan terms or delays. There were problems with the loan – just call at the bank: he is ready to meet the borrowers if they have financial difficulties.

Find sources of additional income

If schedule permits, look for a part-time job: you can help your schoolboy neighbor prepare for lessons, tackle evenings, help a local business hand out a survey, check out how salespeople work at the store.

It is important not to rush to the extremes: if we weakly mean how investments work, the money should not invest in random stocks in the hope that the stocks will grow. It is particularly attentive when all sides overcome proposals to invest in a company with a return of up to 300% per year. They often hide financial pyramids and scammers.

Perhaps the moment came to talk to the bosses you want to increase the salary. "I have nothing to pay for the loan, and at home the hungry children and a pregnant wife" – no argument for the employer, it is impossible to bring the pressure on pity. The chances of increase will be more, if you remember your earnings in recent years, it is possible to think about the company in the future and not to give up additional duties.

To always be enough for everything, and did not have to get into debt, try on an empty mang every day to grab these items: