How to pay off debts correctly

It often happens that, taking money on credit or on property, no one thinks how he will return this amount. Situations in life are different and to foresee something that is impossible. It so happens that the time has come for the repayment of the obligations undertaken, and the required amount of money is not available and there is nowhere to recharge. The amount of debt begins to grow. And how to pay off debts, it becomes unclear.

Assessment of the situation

All cases are unique in their own way and the amount of debt can be completely different. The first thing you need to assess your financial situation. To begin with, in order to be able to pay off debts, you will need to determine the number of banknotes that you can give at a certain time and without prejudice to yourself. It is best when this amount is several times greater than the amount of the contribution. Due to this, the interest on the loan will be significantly lower, and the repayment time of the debt will be significantly reduced.

Types of debt

All types of debt are divided into the following:

• Early payments.
• Those that are repaid on schedule.
• Payments, due to which for any reason arise debts - problematic.
• Those that are not considered possible to pay off are hopeless.

For yourself you will need to clearly understand which group of debtors to treat. Knowing this confidently, it will not be difficult to build a proper exit strategy from the current situation. The question of how to pay off debts becomes urgent when incomes fall sharply. The reasons are different: non-payment of wages, the birth of an infant, illness or loss of efficiency. We need to clearly assess the situation in order to make it clear how long or always (in the case of loss of efficiency) this crisis will continue. This will help not get into a situation when you have to ask someone: help pay off debts.

Payment planning

How correctly to pay off debts on credits? If there are funds and there is a desire to get rid of the debt quickly, the first thing you need to do is talk with the lender and draw up an additional contract. It must, without fail, specify the amounts of the payment and commission amounts, as well as all possible ways in which the payment will be made. After the final settlement of the debt obligations, the bank or creditor must give a receipt for the payment of the entire amount, and indicate that it is closed on a specified date.

When it became clear that you can repay the debt at the same time, you need to do this at least 1 day earlier. Do not interfere and find out from bank employees about whether the payment was timely. Observance of such simple rules will never be able to drive the debtor into fines and penalties. It is important to understand that the creditor is interested in its benefits, and to report independently whether the payment has passed, he will not have a desire. The main thing when borrowing is to independently control the flow of funds to the accounts. This will remove the issue of how to pay off debts.

How to pay off debts if there are temporary difficulties

It is difficult, being not in a very good financial situation, to quickly close the loan. How quickly to pay off debts? With a small and unstable earnings, it is not easy to pay credit obligations on time. In order to find the best solution in this situation, you need to start planning your budget. It is necessary to come up with a table and enter all monthly incomes and expenses into it. You need to start by recording all amounts, expenses and income, but this is the first month. At its end, you need to carefully analyze all financial resources, exclude something from the expenditure part, cut something.

Then, next month, you need to plan the budget so that there is a separate graph, in which the amount of the repaid loan will be inscribed. It must be real, so that it does not happen that a person is again in a difficult financial situation.

Notify the lender

In difficult situations, it will be correct to notify your creditor of the difficulties that arose for any reason. It should be remembered that any bank is fully interested in getting its money back and, if possible, with minimal losses. It is unlikely that in such a situation the bank will impose a fine on the debtor. With his representative, it is necessary to try to agree on the possibility of extending the loan term or refinancing. It is important that it was clear that the person is completely interested in this, but for some reason got into a difficult financial situation. It is necessary to do this as soon as possible, and not wait until the creditor asks about the reasons for the delay in payments.

Peaceful ways to resolve issues with the bank

There are several proven methods how to pay off debts on loans, peacefully settling all the issues with the bank:

• Temporary postponement of payments.
• Several loans are combined into one.
• Debt is fully written off.

The first way, how to pay off debts, is that the bank extends the time for repayment of credit debts. Monthly payment becomes less, but due to the fact that the borrower constantly pays interest, and also that the country has constant inflation, the total amount of the loan that the debtor returns is increasing.

The second way provides that the borrower who has collected several debt obligations, does not cope with payments and the bank unites them in one loan. This method can be used only in the case of a low interest rate, otherwise it is very unprofitable for the debtor.

The third method is the exception to the rule. And the bank applies it only in rare cases. He can completely write off the debt if the balance of the outstanding loan is too small or the borrower has died and has no heirs.

Cases when the wife pays for her husband's debts

Those who are bound by marriage have not only joint property, but also common debt obligations. It is often the case that married people did not settle such important issues as common property during their joint life, and during the divorce they also did not bother to do it, in the end they will have the same status as in marriage.

Should the ex-wife fulfill the debt obligations after the divorce? There are some nuances that depend on how the loan was drawn up:

• A former husband has formalized a loan agreement before getting married, but the validity of this document covers the period when they were married, as well as the time of its termination.
• At the time of registration of the loan, the second spouse acted as a guarantor or co-borrower.
• The ex-husband made out a loan agreement, and his wife did not notify, but the money was spent on joint family needs.
• The fact that her husband made out a loan and spent money for his needs, the wife found out after the divorce was completed.

All these listed circumstances exert a different influence on the ex-husband and wife. Especially in a situation where one of the former spouses falls into such a position that he can not extinguish a loan, or completely refuses it.

In the event that the loan agreement was issued before the marriage, on general grounds, all the responsibilities are borne by the person who issued it. But there are different situations, and only the court can understand them.