Where you can find information on how to extend your loan repayment?
Repayment of the loan is not always going according to plan. On the other hand, failure to pay on time will always result in additional fees and penalties being charged. Are you wondering what the loan repayment looks like, what to watch out for and how to avoid this problem? Do you want to learn how to use this option? Check it out now!
What is the loan repayment extension?
Extending the repayment of the liability is nothing more than the option of postponing the repayment of the installment (in the case of installment loans) or the repayment date (in the case of payday loans). Please note that this is not an automatic option that would activate in the event of repayment problems. It should be remembered that some companies do not allow their customers to extend their repayment, and some of them will have a special procedure, after which it will be possible to receive such a privilege. In fact, there are also companies that allow you to extend your repayment without incurring any fees or procedures (in some cases you can extend your repayment even twice). Unfortunately, there are not many such companies, and very often what the company “loses” in the extension of repayment, definitely makes up for it with the cost of such a loan.
Where can you find information on how to extend your loan repayment?
Finding data on the possibility of extending the repayment period of a given liability is not that difficult. Usually, the best way to find this information is by visiting the lender’s FAQ. This is where you should find all the information about it. However, if you looked through the entire section and did not receive such information, it will not be a good sign. Usually, if the lender does not have a description of this possibility, extension of the repayment will either not be possible, or it will be highly complicated and expensive. However, if you are a more inquisitive person, you can find all the information about the loan repayment extension in the loan agreement, which should be available on the lender’s website.
It should be remembered that the lender is not always willing to inform his client about the costs of such an extension of repayment. It is a very good solution to contact the lender before taking out the loan and ask for all the details. First of all: you have the right to do so. Secondly, the lender must inform you of all the details of the loan. A good example of a company that informs its clients about the possibility of extending the loan repayment period is, for example, ExtLoansUSA Inc.
How do I apply for a loan extension?
Applying for a loan extension option is not always an easy process. First of all, it is worth making sure what the exact terms of the extension will be before you get into trouble. It often happens that you extend the repayment, but only if you have a continuity of repaid installments and a clean account.
By far the best way to start the extension procedure is to contact the lender’s customer service department. Usually, every day counts in such cases, so the best solution is a phone call. You should wait for the connection with the consultant, introduce yourself and provide data enabling the debtor to be verified, and present your problem in detail. The consultant, having on the screen the entire history of repayment of your liability, will verify it and propose the best solution. Remember: the best way to extend your loan repayment is by phone. Try to avoid sending emails and contact forms. Ultimately, you can also use live chat, but it’s best for informational purposes only. Some companies allow you to extend your loan repayment only after completing the relevant documents on the lender’s website. This is a kind of application that should be completed with:
Reason for extension of the payment
Deadline for loan repayment (in case the lender has several options)
Having completed the application, you must make a payment, and then send the completed application. Later, you can do nothing but wait for its acceptance. Some lenders that have the option of creating a user account, allow their clients to complete such an application online after logging into the website. This is definitely a better time saving solution. Remember, the number of lenders on the Polish market is huge. Each person is able to find something for themselves.
What to prepare for by extending your loan repayment?
When extending the repayment period of your commitment, you should be prepared above all for additional costs that will be charged for this service. However, this is not the rule, because some lenders allow you to extend your repayment without incurring additional costs. Unfortunately, as it often happens in life, what the borrower “will save” when extending the repayment, will give back twice in the overall cost of the loan. It should be remembered that even a paid extension extension will always be a much better solution than ignoring the whole situation. An non-extended, unpaid loan will result in additional interest, reminders, followed by debt collection fees and court debt collection fees.
There are different types of repayment extensions that will depend on your loan and the lender’s policies. Usually, you can get an extension of 7, 14, 20, or even 30 days. Sometimes there are companies that offer up to 60 days, but obtaining such an extension is possible only after submitting the relevant evidence. Remember: it is always best to choose a lender who has nothing to hide, has specific rules and all the costs of such an obligation.
Advantages and disadvantages of extending the loan repayment period Summary
Like any product from the financial sector, also the extension of the repayment period has its advantages and disadvantages. The biggest advantages of this solution include:
– No negative impact on customer credit history
– A simple process, without any unnecessary formalities
– No receipt of contractual penalties
– Additional costs (for the application and related to the longer repayment period)
– The possibility of falling into the so-called debt spiral
– Problems with getting another loan from the same lender
Taking advantage of the option to extend the loan repayment period is definitely a better solution than inaction. What’s more, thanks to the introduction of new, more favorable provisions for clients, companies from the financial sector can no longer charge such large fees related to non-interest costs.