Hiring personal loans means getting into debt for a while, so before asking for them we must make sure that we can face the fees. However, some unforeseen situations (that we get unemployed, for example) can make it difficult for us to pay back. Aware that customers can suffer this type of setbacks, many lenders put at their disposal several instruments to prevent them from falling into default.
3 ways to avoid non-payment of a consumer credit
If we anticipate that we may have a problem paying the fee for a consumer credit or simply want to cover our backs, we can hire personal loans that admit to request a deficiency or extend the reimbursement period. In addition, we can apply also for payday loan consolidation and credit card counseling.
Hire a payment protection insurance linked to the personal loan
Payment protection insurance linked to personal loans usually covers the reimbursement of fees in the event that we become unemployed, suffer a work disability or die. Some banking entities will force us to hire one of these insurances to ensure that they always receive monthly payments, but there are also others that allow the insurance to be voluntarily contracted. For example, if we apply for the Cofidis Project Credit we have the option of voluntarily contracting a payment protection insurance associated with the loan.
Request personal loans with lack
If we believe that we can be without work or we do not have one directly (if we are students, for example), we can request personal credits with a lack so that we do not have to pay for a period of time. This lack can be of two types:
- Total: if we ask for personal loans with total deficiency, we will not have to pay interest or capital for the duration of the shortage.
- Partial: in this case, we will have to reimburse only the interest on the loan for the duration of the shortage.
Depending on the entity, the lack of personal loans may be requested at the beginning of the life of the loan or at any other time. The grace period is usually between 6 and 12 months.
Contract a credit for consumption that allows the extension of the term
Some mini-credit companies (personal loans of up to € 900) will allow us to request an extension of the repayment period if we are not able to repay the money on the due date. This service has a cost that will depend on each lender, but we will always pay more to pay interest and late fees and also avoid being enrolled in a file of defaulters such as ASNEF or RAI.
How should I act if I can not repay a personal loan on time?
If we can not reimburse a credit that does not admit deficiency or extension or does not include a payment protection insurance, we can also avoid penalties for delay, but we must act quickly. In these cases, it is best to immediately contact the lender and negotiate the possibility of extending the repayment period to reduce the amount of the installments. The entities that grant personal loans are the first ones interested in collecting, so in general, they will be open to negotiating whenever we show ourselves willing to pay.