The problem with paying off debts on time is very common. The government is trying to increase consumer awareness of the great risk of late payment of liabilities.
Unfortunately, some people do not understand the message and take credits and loans without thinking, thanks to which they fall into a spiral of debts.
Repay loans on time
We have repeatedly reminded in earlier articles that for companies the most important thing is TIMELINESS. People who have taken a loan without a loan often have a problem with it. If you want to take advantage of free first loans and rebates, they are available if you pay back the loan on time.
For exceeding the deadline, the lending companies charge interest, which is causing financial problems for the borrowers. Interest accrues every day after the repayment deadline. There is a possibility to postpone the repayment deadline by several days, but not every company offers it.
From debt collector to bailiff
Lack of timely repayment requires the creditor to undertake debt recovery measures. The debt collection company sends reminders to the debtor in the first period of its work.
If these steps do not help, the case is directed to the court, which decides whether to impose a court order for payment or initiate bailiff enforcement. Unfortunately, if a court bailiff takes over the case and has to recover the debt, it may result in the loss of the debtor’s property.
Spread the loan in installments
Knowing the consequences of being in arrears, you can ask the creditor to spread the loan in installments. It is important not to wait many days with this, but to send the application immediately before the loan interest accrues to high values.
Most creditors want to resolve disputes amicably with their clients. The loan company is anxious to get the money borrowed back. Sending the debtor to a debt collection company gives additional costs, so the ideal solution is an application for repayment in installments. Of course, such a conclusion must come from the debtor, because he is guilty in this case.
The amicable settlement of the case guarantees the creditor to receive the cash he has borrowed, and for the debtor it is additional time to repay the debt on favorable terms. An additional advantage is the fact that the consumer may apply for entering his data from the debtors’ databases after repayment of the liability.
Specimen application for repayment in installments
We can write an application for repayment in installments or ask a debt collection company for it. If you do not want to pay anyone to write a simple application, it is best to follow the guidelines below, which should be in such a letter.
- Title – at the top we suggest to write, “Application for repayment in installments”
- Your details – first name, last name, PESEL, address of residence and current phone number
- Data of the company with which we owe – the full name of the company to which we send a letter with the address of the registered office
- A short sentence in which you express your desire and request to spread the debt in installments
- Justification of the application – this section is described below
- Suggestion – here you should propose how we want to pay back the debt. Provide installment dates and proposals.
- Signature – at the very end there must be a legible signature and date along with the town
Justification for the installment payment application
One of the most important elements of the debt installment payment application is its justification. At this point, the consumer must argue his reason. This is a field in which one should give the reason why we want to split the debt into installments. There can be many reasons, e.g. loss of job or random case. These are just examples, the actual reason must be written in the correct application.
We advise you to mention how much we spend on bills, housing and other liabilities monthly, adding this confirmation. These can be scans of bills or confirmation of transfers.
Now you probably know how to fill out an application for repayment in installments! Below we have described what to do with the application.