As they say, the first step is the hardest to do. Later he goes downhill. When we apply this proverb to loans, it may not be as colorful. While taking the first loan and repayment of one installment does not cause us problems, the next one can be a greater burden. When we remember how easily we have earned money for a dream TV or phone, we eagerly reach for another loan.
The installment is not high at all and it seems to us that this is not a significant amount for the household budget. However, when we add together the amounts of all liabilities, it turns out that they exceed our financial capabilities and we cannot afford to pay all installments on time.
Delays in repayment of liabilities
Several repayment obligations can give you such a large amount that we will not be able to pay everything back on time. Even a few small installments in combination can be too large. As a result, we lead to the situation that we do not pay all the debt on time. We have delays in repayment of loans and credits. In this way, we generate additional costs such as interest on late repayment of installments. Instead of decreasing, our obligations are getting bigger and bigger. Each delay is a greater cost. However, this is not the only problem. We become unreliable partners for the bank due to late payment.
The Credit Information Bureau collects not only data on loan repayment but also on timeliness. Just as all our liabilities are visible to the bank, you can also see there whether we have repaid our liabilities on time. It also determines our creditworthiness. Therefore, not only do we generate additional costs, but also our history in credit check may determine that we will not get more credit.
The term difficult credit will be called any loan which is associated with significant difficulties. We do not receive such a loan at a bank branch, as this is not a standard offer for everyone. When we do not pay our debts on time and our history in credit check leaves a lot to be desired, it is worth asking for help to a company specializing in helping indebted people. It will be difficult for us to get a loan alone.
A company that helps to obtain a loan conducts negotiations with a bank representative at the decision-making level. As a result, it can negotiate for us separate and much more favorable credit conditions, tailored to our current financial situation.