Many people benefit from additional financing, often these are liabilities incurred in various banks. However, not everyone is aware that thanks to the loan restructuring process, they can repay their liabilities in a more convenient form, as repayment conditions change. How to use it and when it is most profitable. Read.
The concept of restructuring
Each of us has met with the notion of restructuring many times. But what is credit restructuring really? It is nothing more than a service on the financial services market that banks usually offer. In short, it allows you to combine several loans into one, so that the commitment we made was less severe in repayment. Having several commitments, we can assume that we have undertaken them, because on the one hand we needed additional funds, but on the other because we will be able to pay them back. Just why overpay? Thanks to the restructuring, we can reduce the costs of our obligations. This will also simplify the repayment procedure for us, because by making one transfer per commitment, we will save valuable time, not only funds.
What is the restructuring of the loan?
To explain the loan restructuring process, it is best to use a specific picture of the situation. If we want to change the conditions on which we repaid liabilities, then we should go to the creditor, with whom we incur liabilities eg in the form of a loan or credit and he thus assume all our liabilities in the bank. We face the fact that we have repaid all bank receivables and we only have a liability to the creditor who granted us the consolidation loan. We are now clear and we are paying back only one liability, the conditions of which are more favorable after restructuring. Banks willingly adapt new conditions to the needs and expectations we have, because timely repayment of liabilities by customers is also in their interest. Changing is, among others repayment time – usually longer, but also the amount of interest due. Here we have to take into account their higher level. Restructuring can also work in such a way as to reduce the repayment time, if we have such a request and the appropriate means to cope with it.
When can we take advantage of loan restructuring?
The loan restructuring tool can be used in the case of:
- When we cannot pay our creditors.
- With the loss of some income due to random or unforeseen reasons.
- Having consolidated liabilities – in the form of a loan or consolidation loan
- When we have a good history in various systems examining our financial condition, eg BIK
- When we want to repay all liabilities earlier
How to reach for restructuring in a few steps
We should be aware that anyone who has excessive obligations can try to restructure the loan. Not every bank will allow such a process, but it’s worth trying. Just go to your bank or use the hotline or the transaction service when you use the electronic version of banking. Identification will be a requirement. We will complete the application, providing our income, and to confirm this, we will need to provide relevant documents different for natural and non-business individuals. The essence of the application will be to indicate the arguments that, in our opinion, support the restructuring of our liabilities. Depending on the situation we are in, we will apply for suspension of repayment, reduction of installments and more. We should remember to properly justify our application, ie to include all documents that will support our postulates,
What can encourage us to restructure the loan?
There are many reasons that can obviously encourage the restructuring of a loan. It can be, for example, the so-called holidays from a loan, which is a kind of deferment of the repayment date. But remember that interest will be accrued on a continuous basis, despite the protection period being granted. Another premise that may convince us to this process is the extended loan period. This causes a real reduction in the monthly commitment that we have to pay back, but here you also need to be aware that the repayment period is longer and thus we will also pay you longer. Another reason may be shortening the loan period, when we have such repayment options that we want to deal with our obligations in a slightly shorter period. Another incentive is balloon installments or loan conversion (profitable but risky).