Credit restructuring. Ways to overcome difficult situations

There are many in the life of various crisissituations, the consequence of which is the deterioration of financial opportunities. This can be a loss of work, a serious illness, the disappearance of the source of income. And if you still need to pay a loan, then it's time to go to the bank and agree on a debt restructuring.

In the borrower's view, this procedureis considered too complicated and bureaucratic. However, this is not the case. Sometimes restructuring a loan for a bank is the best way out of a situation with a borrower, rather than resorting to collection services or to court. Moreover, if the borrower has a good credit history and does not refuse his debt.

What is a loan restructuring?

According to the bank's employees, the so-called"Workout tool" is quite a complicated topic of financial and mathematical relationships. Sometimes even experienced bank specialists "swim" in it. The restructuring of the loan is an opportunity to reduce the debt burden by reducing the amount of monthly payments. At the same time, the terms of the loan agreement change, where the fact of assignment or advantage, to which the bank is going, is fixed.

Restructuring schemes

At the moment, the bank uses severalstandard options for changing payments and reviewing the debt contract. The extension of the loan term is one of the standard schemes of a credit institution. In this case, the loan restructuring is possible only if the time limit does not exceed the one provided for this product. So, for example, if a borrower has a loan for the purchase of a car for 5 years, and the maximum allowed period is 7 years, then it is possible to extend it only for 2 years.

The next way to facilitate payments is tothe delay in repayment of the loan amount, or the so-called "credit holidays". Each bank in this case has its own program, which is designed for a period of 3 months and up to six. For a longer period, the prolongation of the contract is made if the client expects to sell any property or receive income from it, which has documentary evidence. But in any case, if payments on the body of the loan are suspended, then the borrower must pay interest on a regular basis. The restructuring of the loan can be effected by a change in the repayment schedule. Or in this case a combined method of repayment (at the request of the client) is applied. To non-traditional ways of debt restructuring can be attributed a reduction in the interest rate and the abolition of penalties. To each case the bank is like an individual order.

The restructuring of the loan is an additionalconditions that apply to the main contract with the bank. And everything is signed strictly by mutual consent of both sides. However, after the signing of the restructuring agreement, it is by no means possible to relax. From this point on, the borrower and his loan are considered problematic. Of course, there will be no annoying phone calls, bailiffs will not visit, but in any case, the banking service for managing late payments will have "on the pencil" of such a client.

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