Every credit - it is a financial liability. Soberly assess your opportunities, take credit responsibly. Before making a credit, carefully read all the nuances.

About bad credit history

What happens if I can’t repay the loan?

If you are unable to repay the loan, you should contact the lender immediately and explain the situation. In most cases, your lender will try to help you find a general solution to the problem. Perhaps the payment schedule will be changed, or you will be given a credit vacation for a certain period of time. If you are still unable to repay the loan, the debt collection process will be initiated.

In the worst case scenario, you may be registered in the Debtors register, which is a register of bad payers. Entering into the register of debtors has many negative consequences, you will not be able to take out additional loans. So, you should always consider your loan carefully before taking it out.

The best thing you can do if you are on the debtor’s register is to contact the creditors you owe and find out how best to solve the problem. Some of those to whom you owe money may agree to make concessions and reconsider your situation.

How do I get a loan if I’m in the debtors register?

If you are on the debtors register, it is because you are a so-called bad payer. This does not happen automatically. Those to whom you owe money should report it to the register if you have not paid them the bill after several reminders. If you are on the list of debtors, this is a signal to the lender that you do not know how to pay on time. The lender is at risk by lending you money, so most fast or consumer loan providers will refuse to give you credit or will require you to pay a slightly higher interest rate to offset the risk.

There are loan companies that specialize in refinancing, that is, they combine all your unsecured loans into one, often this requires collateral in view of your damaged credit history. Usually, in this case, the loan term is extended to reduce monthly payments and thus make it easier for you to repay loans. If you are in a difficult financial situation, it is important to make a budget. This way, you can get an idea of where the money is going and start saving where you have the opportunity. Then you may not need to borrow money the next time you have unexpected expenses.

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