Installing the debt into installments is a service that guarantees the possibility of matching the payment schedule to our budget. When we need a quick injection of cash, we often decide to use the services of loan companies.
They tempt to promote free payday loans or to receive a transfer almost immediately after the lender’s consent. However, it can be difficult to accumulate adequate funds for repayment within 30 days. Which companies allow the debt to be split into installments?
Where does the debt come from?
Seeing attractive advertisements of loan companies, no one even thinks that someday instead of “quick loan where” he will enter in the search engine “spreading the debt in installments which companies”.
How does it happen that despite assurances of excellent conditions problems eventually arise? When browsing online forums, where borrowers often seek help, you can see that most often problems with repayment are a consequence of too much liabilities. Many users point to themselves as guilty of this situation.
Normal debt and the debt loop
The scheme is simple. The lender does not ask what you borrow for. Sometimes, he does not ask questions about our current debt. We see the chance for easy money and want to squeeze as much as possible. There was a few pennies to repair the car – the first loan, it’s easy. Later, the second, third, fourth payday … Until we finally get information about unpaid liabilities. One, two, three warning and clash with reality. We are facing a debt loop.
For more information on possible solutions to this situation, see: HOW TO AVOID DEBT SPIRALS?
People who took a payday loan for a specific purpose, for example covering part of the costs of renovating an apartment, also participated in the forums. However, they could not predict that after the end of the month more unexpected expenses would appear and they simply did not have the amount needed to be refunded. In both cases, you can use the solution, which is spreading the debt into installments.
How to deal with debts?
Some lenders offer their clients solutions to facilitate repayment. Among them you can find:
- the option of extending the loan period – that is, postponing the repayment date by 7 to 30 days at the client’s request sent electronically, during a telephone conversation or in the client’s panel
- payday refinancing – this involves issuing a special instruction enabling the lender to find a company that will grant us a loan in the amount of arrears. As for the loan period, it usually corresponds to the original one. As a result, we have a new creditor and a new term. The service will be possible after paying interest due to the first lender.
However, both of these solutions must be activated before the repayment deadline and the relevant fees.
What is the payment in installments?
If you are already late in giving your money to the creditor, it is worth finding information whether he offers the possibility of paying the debt in installments. This involves establishing an individual repayment plan. As a result, from one large amount, to which interest is still added, we get dates of monthly or weekly payments of part of the debt. We recommend that you pay attention to this information while looking for a suitable loan company. The possibility of using this service should be included in the framework contract made available on the lender’s website. In addition, some put such data in the Questions and Answers section (FAQ) or information form.
Installment debt – how to use it?
If our obligations have already been transferred to an external debt collection company, we should first of all answer calls and ask for a debt repayment plan. However, when the lender remains our creditor, we also cannot avoid contacting him. We have to face the problem. The form of loan application depends on the loan company. However, in every situation, it is worth sending a properly written request by registered mail to the company’s address. If the lender tries to contact us by phone, we should collect it. It may happen that instead of a letter we receive an answer during the conversation or by e-mail.
Despite the lack of registration, it is always worth trying to negotiate with the creditor. Different situations can happen in our lives. Specialists emphasize that they should be referred to in the justification of the application. These can be: job loss, health problems, random events.