Have an overdue debt? What to do if you still need a loan?

Life can be difficult and sometimes troubles happen one by one. In this article, we will tell what to do when you need a cash loan but you already have an overdue debt in the bank.

How to get loans with overdue debts?

The need for a certain amount of funds may arise at any time. If you do not get a bank loan, then you can get money in debt using a fairly simple scheme in one day. And what to do if there is a debt on the loan in the Philippines? How and where to get a new loan?

Today, for this purpose, you can contact one of the money lending companies of the Philippines. Such companies lend to customers even if there is a large loan debt in a bank. However, when contacting an MFI (micro financial company), you should remember that such organizations insure themselves against unscrupulous borrowers by raising interest rates and reducing loan periods to several months, and sometimes weeks.

Yet when money is urgently needed, contacting an MFI is perhaps the best option. In such a company, you can take cash loans to make an urgent purchase, pay for treatment or partially close overdue debt on a loan in a bank, and thereby save yourself from a number of unpleasant consequences.

What do you need to do in order to get a loan? A similar procedure in the MFI is performed according to the optimally simple and understandable scheme. To obtain funds you need:

  • Go to the money lending website.
  • Read the terms of the loan.
  • Carefully fill out the proposed form.
  • Recheck the data specified in the questionnaire and send it for processing.
  • Wait for the call from the MFI employee and provide the card number for crediting funds.

Bank debt in this case is unlikely to be the reason for refusal by the MFI. However, in order to significantly increase your chances of a positive response, you still need to try to at least partially repay the debt in the bank. Thus, in the credit history information will appear that you do not ignore the conditions of the money lender.

How to get a positive experience from working with a money lender?

Microfinance organizations help people solve temporary financial difficulties by providing short-term loans. You can contact the staff of such organizations in order to take out a loan to get cash. How to make cooperation with MFIs as convenient and profitable as possible?

  • First, you need to correctly determine the amount of the loan. It is necessary to do this only on the basis of its current solvency.
  • Even if you have a large loan debt in a bank, do not try to borrow a loan from an MFI to cover the full amount of your debt in the absence of a stable income.
  • Read the terms of the loan carefully and if you have questions, contact the MFI consultants,
  • Properly determine the timing of debt repayment.
  • Specify only valid personal data in the questionnaire.
  • If you have financial difficulties, do not let things take their course and contact the company immediately to resolve the problem.

When signing an agreement with an MFI, you should remember that such companies work in accordance with the current legislation, which means that if you violate credit conditions, you can file a lawsuit and thus create a lot of problems for you.

If the loan debt in the MFI is not paid on time, the amount of your debt will begin to increase rapidly. The fact is that such companies set a rather high percentage of overdue payments and account for it from the first day of delay.

How to solve the issue of overdue loan and arrange a new loan?

Today, it is not always possible to get a bank loan even for people with an ideal credit history. Banking institutions in Philippines are serious about lending questions and can deny of a loan for a variety of reasons, whether it is insufficient official income, or its complete absence, unsecured debts, etc. what can people do in this situation?

Consequences of non-compliance with the loan agreement

Before looking for ways to get a new loan, you need to figure out what exactly you face if you don’t pay your overdue loan and what the bank can do to return your money.

So, first, if you violate the terms of credit on your part, the money lender will begin to account for penalty interest. In any loan agreement, the amount of such fines and the terms of delay, after which they begin to accrue, are initially prescribed. Thus, if for some reason you do not make obligatory payments, your debt will begin to increase in an arithmetic progression and will simply become overwhelming for repayment.

If there is a loan debt, and you do not pay it for several months, the bank starts sending you notifications and without receiving any response from you, simply sells the debt to a collection company. Collectors use more aggressive debt collection methods and begin their work with systematic visits to your residential address or residence permit. It is worth noting that, despite the rather extensive powers of employees of such firms, they still do not have the right to seize your property without a court decision, and even more so to intimidate you with terrible consequences.

If the overdue loan is not paid back by the borrower over a long period, the bank or collection company files a lawsuit. As a result of such activities, lengthy litigation with the aim of collecting the debt from the personal property of the borrower begins. In this case, to win the case, you can only if you hire a very good lawyer, and this in turn will lead to unforeseen expenses, which in the end may not be justified.

Possible solutions to the problem

There is a loan debt, what to do to solve the problem? In order not to become a participant in lengthy legal proceedings and not lose property, you need to do the following:

  • If financial problems arise, do not wait until interest begins to accrue, but immediately contact the bank for a choice of solutions to the problem.
  • If you have already begun to receive letters of debt, then do not ignore them and immediately contact the bank employees to clarify all the nuances.
  • In the event that the debt is transferred to the collectors, do not panic and get professional advice from lawyers.
  • If you receive a notice stating that your case has been brought to court, do not hesitate and search for a lawyer.
  • It is worth noting that if there is a loan in a bank overdue, then you can always resolve the issue peacefully. The fact is that most banking institutions rarely choose legal proceedings to get their money and agree that the borrower will pay the loan “body” in equal parts, even without interest.
  • In order not to aggravate the already difficult situation, we recommend that you go towards the representatives of a banking institution, of course, only if they act according to the law and do not violate your rights.