Banks are aware of the risks involved in providing high loans for many years, such as mortgages. Still, if the customer is unable to pay back the loan, they are increasingly reluctant to restructure their liabilities. Why is this and how to deal with debts in such a situation?
What is the chance for a debt relief at the bank?
The first thing you need to realize is that the bank will not initiate a conversation about the possibility of restructuring . So if there are problems with your personal finances, do not neglect it, but go to the bank as soon as possible and inform him about any existing or anticipated problems. It cannot be expected that it will immediately find possibilities for us to resolve the situation. You should take the initiative both in the case of the conversation itself and the solution to the problem. We know best what form of restructuring is optimal for us. It would be good to describe a ready plan to a bank employee. Remember to show evidence of deterioration in your financial situation and complete your application accordingly. Errors in the application may be the reason for refusing to restructure liabilities. Arguments should also be provided that the lack of financial liquidity is temporary and will return to equilibrium after a given period.
What to do if the bank does not agree to the debt relief?
First of all, it is worth analyzing previous activities and considering whether we have made a mistake. For example, we could have filled out the application incorrectly, provided insufficient arguments showing the poor financial situation or not collected enough documents.
In this situation, you must complete the application again and complete the documentation. It is important not to hide all sources of income from the bank. Even if you have lost your permanent job, but you also earn extra money, for example part-time contract work, you should inform the bank. In addition, you can provide additional collateral in the form of real estate that is not yet encumbered (i.e. it cannot be entered in a mortgage for another bank). If the poor financial situation is temporary, you can propose to the bank that he agree to suspend repayment for the time of selling, for example, electronic equipment, and use the money to be allocated to the liability.