The moment you decide to take a loan is the beginning of a long road, which consists in thoroughly analyzing the goals, possibilities and market that allows us to take this loan. Each bank offers different terms and forms of payment, making selection difficult and often requiring specialist knowledge. It is easy to guess that many decisions taken in this area turn out to be unfavorable and incorrect. Can the terms of the loan be changed if we consider that the options available to date do not meet our expectations? How to do it? What elements can we actually change and does it involve obligations other than before?
Credit restructuring – what is it?
Let’s imagine that we are taking our first studio loan. We started our first serious work after graduation, so our financial possibilities are not very large. So, taking a loan for PLN 200,000 and earning a statistically small amount in the first job, the terms of the loan are adapted to the current possibilities. In 10 years, however, it will turn out that the terms of cooperation have improved significantly, and thus – the material statute has also improved. Therefore, the borrower would like to pay off the contract earlier. Such changes require a renewal of the existing loan repayment terms. Of course, they also apply to the opposite situation, when our capabilities deteriorate. This is what we call restructuring.
Here, there will probably be questions about whether banks (and which banks?) Agree on such seemingly beneficial changes for borrowers. Contrary to the first beliefs – restructuring is not so rare and reluctant to give – mainly due to the fact that no change is associated with direct losses for banking institutions. Therefore, all large and popular institutions of this type agree to talk in this regard.
Where to start restructuring your loan?
Starting the stages of implementing changes in the existing loan may involve additional fees. This is actually the main and most important thing when it comes to the first steps of talking to the bank. The amounts depend on many different components. In addition, which is a key issue and which we often forget – we apply for changes in the loan before the change perspective (especially for the worse), and not at the time it occurs. The bank is more willing to accept such notifications if it sees the common sense, solide and preventive action of the borrower.
Let us remember that it is important for the bank to pay back the loan, not scuffle with indebted borrowers. This means that in the case of hitherto, trouble-free cooperation of pure history, restructuring is easier and more possible than we might have expected.
An application for changes in the loan terms may include several elements – both one and several listed in the following list:
- change in the schedule – that is, extend or shorten the repayment period of the entire amount. Here the mechanism is simple – faster repayment increases our installments and extending the repayment increases the number of interest. Both cases have advantages and disadvantages for both sides
- The so-called. loan refinancing – that is, taking a second loan to repay the former, or combining all liabilities in the so-called consolidation loan. Many loans combined into one commitment for a longer repayment period often mean much better conditions. Repayment of such a loan is easier and less burdensome on the wallet
- currency conversion – a change in the currency on which the loan is taken. Often, such a change ends up with lower interest. However, the relatively recent fluctuations in the Swiss franc should be a serious alarm and a lesson for us. Changes of this type are not dependent on us and often involve considerable risk. In 2013, when the franc increased significantly, many people will be forced to pay back liabilities exceeding the existing debt almost twice. After this period, the popularity of loans in foreign currency dropped significantly.
- Vacation / Loan holiday – in simple terms, this is the period in which we take a break from paying off loan installments. Of course, no deposits do not suspend the accrued interest. This solution is a great alternative in the case of really big financial problems. It is worth noting that not all banks agree to such solutions – here the most important is your credit history, records recorded in the BIK, etc. The clean the card, the greater the likelihood of getting a vacation.
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