Borrowing money as we have established in the previous articles has become very common and because of that people use loans for various short term as well as long term expenses and purchases. And there are no doubts that borrowing money can be a great option in some situations but when you over do it then it can lead to troubles and some financial stress. Because more and more people are having troubles repaying their debts I have created a list with some things you can consider when you can’t make those monthly payments.
Create a budget plan
First thing that you should consider is to create a budget plan and try to limit your expenses so that you get some spare cash that you can use for those loan payments. When you are having troubles with debt payments then that means that you have borrowed too much money or have not examined your financial situation before taking out those loans. But even if you have lower income than you had when you borrowed you still have to pay those debts and that will mean creating a strict budget plan by eliminating all the unnecessary expenses starting with entertainment.
Extend your loan term
If budgeting did not help and you have a short term online loans rather than long term debt then one thing you can do is to extend the loan term by a pre-determined period by paying some small amount of money. These loan extending options are usually available only for short term loans and they can be a great tool if you can’t fully repay your debt. But be careful as these payments can get quite expensive if you make them multiple times.
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Call your lender(Deferments)
Another ting that you can do is to call your lender and try to negotiate a deferment for your loan payments or extend you repayment schedule making your monthly payments smaller. If you are honest and try to explain to your lender the situation that you are in then in most cases it is possible to create a solution that benefits both you and your lender. But don’t expect miracles because the lender is inclined to make money from this transaction and that is why you will most likely still need to repay the debt in full!
Ask for help
If you can’t negotiate a deal with your lender then you can try to ask for help going to your family members, friends or finding a finance specialist. Usually family members, relatives and close friends will be able to help you if you have some short term financial troubles but in long term situations where you have lost your job usually you will need a financial planner that could be able to negotiate with your lenders and help you find a new job as well as some other income streams.
Borrow more
If you have no other options then you can consolidate your debts or borrow more money to cover those loan payments. But this should be the last resort and you have to remember that you will have to pay back the initial loan as well as the new one an in the coming months you will have even bigger monthly payments and they will be even harder to repay.
File for bankruptcy
And the last measure you can take is to file for bankruptcy or try to fight your lender in court. If you file your bankruptcy then all your possessions can be sold off and proceeds from those sales will be first of all paid to the lenders and basically you will have to start your financial life one again from nothing. But at least you will start form nothing not from being so deep into debt that you can’t even see the end result.
