The essence of loan restructuring is a renegotiation of the terms, a change in the clauses of the loan agreement. This is a complex and important process that makes sense only if the changes are in the interest of the borrower. On this page we will look at what is credit restructuring and what are the advantages, features and options for restructuring. hypnosemontreal.net has details
Loan restructuring, the overall change that takes place involves a number of different actions – you can extend the deadline, change interest, refinance credit, merge all liabilities into one, or take other actions that completely alter the look of the past You credits.
When you will renegotiate the terms of the loan, you need to thoroughly analyze and compare the offers offered in competitive conditions by the different lending banks and financial companies to choose the most effective solutions for you.
Consider and consider whether you will have a real benefit from credit restructuring for you as borrowers and then proceed to this action.
Renegotiation of the terms of a loan is very often applied in practice when borrowers are in an unfavorable financial situation that leads to non-performance of the loans granted, to past due and non-payment of the commitments.
The real consequence is the deterioration of the credit history and credit file accessed by the registered banking and non-bank companies in the Central Registry, you become a default debtor, you pay default interest and fines, penalties, fees related to your notification, you lose the opportunity to withdraw new credits.
To avoid this, we’ll focus on what you should pay more attention to when you restructure a loan.
- The interest rate on the loans – it is fixed, constant for the entire loan period (this interest creates some clarity, you can plan and actually distribute your expenses), or a variable – formed by a base interest rate and an allowance for the creditor. Under a dynamic economy and rapidly changing credit market conditions, when renegotiating the loan, you can take advantage of a lower interest rate that will be in your interest and will generally reduce the cost of the credit you use.
- Fees and commissions. They are an essential part of the cost of the loan and can aggravate their value. Explain the origin of the extra costs, service charges and credit management for early repayment.
- Amount and maturity date of repayment installments. Save the same amount or reduce the amount of repayments, choose a convenient date that will make sure you have received your expected earnings.
- Term for repayment of the loan . Depending on your individual financial capabilities, you can shorten the payout period, which will save you money.
- Credits must be transparent and clear , there should be no ambiguous texts, hidden clauses, small print, or convex expressions.
- You should always be aware of the movement of your credit, knowing the real situation, having information by phone, email, SMS, through a client account or at a creditor company’s office. You must be assured and confident that you can obtain an official document, a valid certificate of obligations or a lack thereof.
- Insurance . They are usually also on behalf of the borrower and in favor of the lender to reduce its credit risk.
An option to restructure your credit is to extend its term . If you have previously signed a contract to return the loan for a specific time, but you do not get the expected earnings for the period, or if you have not properly planned your finances, you can contact the lender to extend your refund. Companies offering this opportunity are:
- Vivus – You can extend your loan term by 7, 14 or 30 days by paying an extension fee. The company also offers fast, credit-free loans .
- Credit – you can extend the payout period indefinitely. If at the due date you do not have the money to pay the entire installment, you can only pay the cost. This will resume your loan with the initially requested payment period.
- Feratum and Quick Cash – the extension period is 7, 15 or 30 days. The Borrower owes a certain fee as a percentage of the amount employed, for each individual extension depending on the number of days indicated.
- Viva credit – You can request an extension of the time in the office or by phone. After completing a borrower’s assessment and approval, the duration of your quick credit will be extended by a further period.
- Creditmaks – there is a possibility to extend the term of the loan – a fee is paid which is paid in advance and in full.
- Cashback – if you are temporarily experiencing difficulty paying a deposit within the set deadline, you are requesting a restructuring request. An additional amount is not translated, and the obligation is rescheduled for the period you want.
- Profi Credit – If you are in difficulty, if you lose your job, you may reduce the amount of the contribution, you may extend the period, you may postpone your monthly payment.
- Credit Ins – In order to avoid overdue payments, you can only pay the interest due for the month and your contract for the remaining amount will be renewed for a new one-month period on the same terms. The company offers credit immediately with approval within minutes.
Another way to restructure a loan is to refinance it . This is the process of downloading a new loan to repay an old credit and to have money left to use for your needs.
Refinancing can be done at the same financial company in which you drew the previous credit or choose another company that offers more favorable terms for you. Keep in mind the characteristics of the different loans offered by banks or fast loan companies, compare them and choose the best parameters.
Fast-refinancing loans are offered by the following companies: Creditismo, Feratum, SMail Loan, Mini Loan, Credit Card, Credit Ins, City Cash Loan, Easy Credit, Riva Loan and others. Almost all banks offer refinancing of loans, but the best conditions are in DSK, UniCredit Bulbank, Texim Bank, First Investment Bank, Postbank and others.
The ability to restructure loans is to merge liabilities into one – you pay only one company, you have only one maturity date, you have only one interest – that is, you optimize your income and expenses, plan your finances more successfully.
Favorable credit offers for aggregation of liabilities from different financial institutions are from BNP Paribas – from BGN 1,000 to BGN 30,000 and a repayment period of 6 to 96 months, you choose how many obligations to merge and receive additional funds under fixed terms.
Leading banks in our country also offer debt consolidation as an option for loan restructuring – UniCredit Bulbank – up to BGN 75 000, United Bulgarian Bank – United credit up to BGN 20 000, Postbank from BGN 500 to 40 000, Société Générale Express Bank to 50 000 BGN, D Bank up to BGN 30 000 and others.