Modern life is a cycle of circumstances that may greatly disturb the well-designed and constructed plans.The problem of the emergence of any financial problems over the past few decades, people are used to solve modern banking institutions.The citizens have opened the possibility to borrow money to buy real estate, cars, appliances, furniture and other goods which are necessary for normal existence.Loans provided for the purchase and construction materials business decision problems, treatment, recreation, education and other needs.Get a bank loan can be every citizen who has a good credit history and regular income.Get any kind of loan quite easily due to the fact that the banking sector is thought a large number of credit programs as a magic wand, inline help solve problems.Bank customers often do not even think about what situations may arise in the event that debt repayments become a problem.
which may affect the possibility of making compulsory payments
The causes of the mass of complexities.They can be:
- job loss;
- disease;
- jump in the exchange rate;
- death of a family member;
- one earning family members become unemployed;
- negligence;
- occurrence of other life problems, which drew financial losses.
possible problems with non-payment of the loan
Non-payment of mandatory payments on the loan agreement for pulling a series of additional problems.It all starts with the call of the bank employees, then to the address of residence of the debtor claims appear letters from the management of the institution, the lawsuit, workers of executive service.And, worse, the threat comes from the special services.Bullying unscrupulous borrowers is becoming one of the most popular methods employed funds requirements.In addition, the credit bondage also provides for a penalty for non-payment of debt and bank fines are several times the total amount of debt.One of the ways out of this situation, according to experts, is considered to be borrowing funds to repay the amount taken.To find the answer to the question "how to repay the loan", it is necessary to possess some important information.The banking law has a term that refers to the full repayment of borrowed funds on the basis of a new loan at the bank.If you look in fact, is in the process of refinancing or refinancing is necessary to take out a loan to pay off another loan.
main advantages of lending
- Refinancing helps bank customers to get out of bondage problems with finances, correct previously made mistakes.
- This method actually increases the repayment term of payment without any financial loss.
- Refinancing allows the borrower means to significantly reduce your required monthly payment in the payment of the debt to the bank.
- If you become familiar with all the loan programs banks in the country before take out a loan to repay the loan, you can even reduce the principal amount of debt.
- refinancing to avoid penalties and fines for non-payment of principal.
- This option helps to avoid the payment of the debt of the trial, which requires a lot of time and nerves.
- Before you repay the loan, you can choose a bank with the most favorable terms.
What should pay attention to the conclusion of the contract refinancing
Before you repay the loan, you must carefully examine the initial credit agreement.Bank policy provides special programs that contribute to the repayment of debt due to the additional loan.Often spelled out the possibility of lending in the contract.It occurs after a certain amount of time will pass.In each bank the period that must elapse before the conclusion of the contract refinancing different.On average, its duration is six months, but other variants are possible: three months or a year.Leaders of the institution itself is interested to repay the amount of occupied was done, so the conditions of the credit program provides an opportunity to the debtors of the bank to cope with debt defined benefit by reducing the interest on the main body of the loan, extend credit and other loyalty programs.
should be carefully re-read the contract before you pay off the loan quickly
Refinancing may not be suitable for all credit agreements.Actually for some of them, this method of debt repayment is irrelevant.
There are some programs banking institutions that do not allow the body to pay the loan early.Therefore it is necessary to clarify this opportunity before signing the documents.Bank employees claim that there are loan programs that do not involve changes to the schedule of payments on debt.In such cases, the contract refinancing does not make sense.Moreover, there are banks which provide the commission for early repayment of the loan, so these items should be specified.In 2011, legislation was forbidden to use this method of interest calculation, but they are still there as a kind of hidden fees.
Can I prepay the loan and what are the pros of early redemption?
Early repayment of debt has many advantages.First of all it concerns the psychological condition of the debtor.When fully occupied by the amount given, the person feels more comfortable and freer.If we analyze the payment, the early repayment is automatically reduces the amount of principal being funded by a reduction in the interest charged.An important advantage of debt is also a fact that the money saved can be invested in a profitable business and not pay the bank.Early repayment of the loan in most cases is beneficial to customers, but not banking institutions.They lose interest on outstanding loans when early payment.Until 2011, many banks have generally been provided for various commissions and penalties in large amounts of pre-paid debt.Now the legislation has improved the conditions of lending cash, but the moratorium for a period of six months, a year or a minimum of three months for early repayment still exists.Specify the duration of the ban in each bank can be in a contract lending even before the early repayment of the loan.
Refinancing of consumer loans
Consumer loans are taken for a period of much less than the larger the debt, but at the same time they are not very advantageous for the family budget.Perhaps you saw the interest rate on loans, which are much lower than at your bank, which can be an incentive to refinance.Often it decreases over time.This can be considered some of the risk of the borrower, who took a loan amount on less favorable terms.For example, your credit issued "Privatbank".How to repay the loan in advance in this financial institution, it is necessary to deduct in the loan agreement.If it is possible to refinance at more favorable conditions, to reduce interest rates enough to draw a sample pack of documents.If you decide to take a new loan from another bank, it will be necessary to collect additional documents.
Refinancing auto loans
before quickly repay the loan to buy a car, you need to collect an additional package of documents related to the car and the loan.This set of documents depends on the purpose of writing a contract refinancing.If you arrange a loan to buy another car, the registration procedure requires the agreement of sale of the first car in the cabin.The money will be an initial payment under the contract refinancing.But in any case it is necessary to conclude a new insurance, in which the beneficiary will be specified to another bank.
get a bank loan to pay off the debt on the mortgage
This type of lending is considered to be the most difficult to process, it requires additional documents relating to the property, which was taken for the acquisition of a loan made by payment of the loan balance of the body and other details.It is necessary to conclude a new insurance contract with an indication of the new bank, to do an assessment of real estate at the moment and re-register the property.Re-registration of a new mortgage contract will pull in additional significant costs, they would be justified under more favorable terms of credit only if the amount of outstanding mortgage big body.
additional documents and conditions for refinancing from other banks
Before you repay the loan, borrowed money from another bank, it is necessary to collect additional documents for its registration.In addition to the standard package for processing the transaction will need to collect references that characterize the condition of the loan.
- Before you prepay the loan for the purchase of real estate or a car by borrowing funds, is required before a signed loan agreement.
- need to prepare and debt repayment schedule showing the amount of monthly mandatory payments.
- If the loan entered into an additional agreement (contract of agency, mortgage), the originals of these agreements must be presented at registration of the new loan.
- the bank that you have the money, get a certificate on the balance of the debt.
- If refinancing will be a large amount (in each bank is specified), you will need to be further guarantee agreement of at least one individual.
