What if there is nothing to pay the loan on


There may be a situation in life when the financial sector starts to limp. Firing, changing jobs and changes in salary levels, unexpected expenses, or just a delay of honestly earned money.

At the same time, if a person has a loan at www.paydayme.com, all this can prevent him from paying it on time. How to resolve the situation, not to quarrel with the bank and not to bring the case to court, if it became clear that it is not possible to pay the loan? Today we answer that question in detail.

What exactly shouldn’t be done

If the time is right to make a payment on the loan and you understand that there is no money for it, the first thing you can’t do is hide from the bank.

If you don’t answer calls, letters, and SMS from the bank, go abroad, or otherwise cut off the connection, it will play against you. The bank will have to seriously consider returning your money by notarial or judicial means. This behavior will also severely damage your credit history and in the future, it will be more difficult to obtain a loan not only from this bank but also from any other bank.

What should you do?

Options for restructuring:

Postponement of loan repayment. This means postponing the date of payment for the loan for a while. This way you can buy time for yourself. But you must have a really difficult financial situation and serious reasoning for it. Because you want to skip the payment to take more money on vacation, you are unlikely to approve a postponement. However, if you are cut at work, your salary is delayed, you are sick or you have a child, the bank can be understanding. The main thing is to have proof of why you are going to ask for a postponement.

The decrease in interest rate. This can be especially important if, at the time you took out a loan, the bank was paying higher interest than it is paying now. The greater the difference between these rates, the greater the chance that the bank will agree to this measure. This will reduce your monthly loan payment.

Rollover of the loan. Simply put, it’s an extension of the total payment term, which leads to a reduction in the monthly payment. That’s the math. Let’s say you have a loan of $4,800 for 2 years, which provides for a monthly payment of $200 on the principal + interest. A year after signing the contract, when the debt has already been paid for $2400, you come to the bank with a request for an extension of one year. If the bank approves your request, you will now pay $100 each month instead of $200 in principal debt. This will ease your monthly financial burden. However, the total overpayment will be larger, as the interest payment period will also be longer.

Refinancing the loan. Above, we wrote that in the situation with growing debts, you should not take new loans. However, the essence of refinancing is slightly different. This is a loan that is issued not for any consumer needs, as usual, but strictly for the repayment of the previous loan. At the same time, it is important that either the interest rate under the refinancing is lower or the terms are longer than under the old loan. And even better, both. Sometimes the possibility of refinancing can be provided by the same bank where you want to repay the loan. But most often it’s an outside bank that “buys” your loan. You can also use refinancing to combine several loans from different banks into one and make payments more convenient.