For a good reason, consumer advocates continue to point to the importance of on-demand organizations and planning for borrowers. In case of deferment, the due date of a claim is postponed. The lending gives the debtor an extraordinary payment break, so that, for example, a short-term financial shortage can be bridged. If you are in arrears with payments for loans or insurance, you usually pay expensive costs. Consumers can also pay one or more installments per hour.
Even with the best possible credit preparation by the borrower and even after the most intensive review by the lender, it may happen from time to time that loans can not be repaid as agreed. There are countless reasons why an initially easy repayment plan for the loan is no longer sustainable.
If there is a foreseeable non-payment of the next loan installment, the borrower should contact the lender (bank, savings bank, housing association, etc.) at an early stage. An offensive attitude of the borrower is always well received by the lenders and probably saves already the first – in this situation especially superfluous – additional costs for the reminder.
In addition, there is almost always the chance to postpone a loan with a good discussion basis. A loan deferral is an arrangement to defer a short-term liability between the borrower and the lender. This contract is also called a “deferral agreement”. A deferral contract (usually in writing) can be concluded in different ways.
Completion of the loan:
A repayment of the loan over a certain time does not take place. In such cases, the repayment term is very often extended by several months. Loans are reduced: you only pay an (affordable) part of the installment over a certain period of time. The arrears are then (depending on the agreement) later offset by higher amounts or supplemented at the end of the deadline (in the form of monthly or full repayments of the remaining debt).
Extension of the term of the loan:
Usually up to 1 year depending on the term of the loan possible – special agreements are of course possible. In the event of – expected – prolonged default, a full rescheduling of the loan may also be considered. In this respect, however, the bank has to assume that future payouts can be expected. As you can see, postponing is a reasonable (and often flexible) way of overcoming a temporary bottleneck.
However, the probability of occurrence and the nature of such a payment interruption naturally depend on the lender. It is therefore imperative to contact the creditors early (ideally before the first payment reminder, but at the latest after the receipt of the first reminder) (if they do not do so for reasons of care anyway).
In the near future, should you expect to have fixed, unallocated amounts (eg phasing out home savings, life insurance expiry, vacation and severance pay, etc.), inform the bank about it as well – this could greatly simplify the postponement or postpone the postponement , However, when the capital is disbursed, it should actually be used for the agreed repayment of the arrears.
For example, if only part of the installment is agreed, the postponement agreement should be strictly followed. Repeated extensions or changes to deferral agreements are not welcomed by the banks – this is a clear warning signal for an impending total loss. Incidentally, a postponement agreement is usually not free – make sure that you have no further (unnecessary) backing up in an emergency situation.
However, this saves you higher arrears and dunning interest – a little money for a deferral would be quite bearable and reasonable. The bank may also make it clear that you are also being troubled by borrowers …. You can trust it at least once. So take the initiative as if you had repayment problems with bonds!
If you do not agree to the deferral, please contact a debt counselor. Stay away from the loan shark!