Credits: dealing with repayment difficulties


A loan commits you. Whether it is a mortgage or a consumer loan, you must honor the payment of your monthly payments. What are the possible steps if you encounter repayment difficulties? Redemption and restructuring of loans, negotiations with your banker, over-indebtedness commission. Let’s see the right steps to follow.

Our advice: negotiate with your bank as soon as possible.

In all cases, it is in your best interest to speak with your lending institution as soon as the first difficulties appear and even in advance if you plan to encounter difficult periods. Your good faith will be a positive factor in order to start a negotiation. You can for example agree on new repayment terms, discuss a possible renegotiation of credit, or even a modulation or even a postponement of your maturities.

Also think that the majority of credit contracts include a suspension clause. This provision can allow you to postpone your repayment dates up to one year.

When to appeal to administrative bodies?

As a last resort, if none of your negotiation steps are successful, you can also turn to the administrative authorities. For example, going to the over-indebtedness committee can help you get an amicable repayment plan accepted. The district court can also allow you to defer or spread your debts over a maximum period of two years.

Assets to study: restructuring or buying back credits.

Whether you have one or more lines of credit, you can consolidate your loans into one loan with a more advantageous rate. This solution will allow you, for example, to replace a mortgage with another loan taken out with lower monthly payments (generally also over a longer period.)

The repurchase or the restructuring of your loans allow you to better control your budget, to avoid a situation of over-indebtedness, even even to make new investments by reducing your monthly charges. Talk to your Solution Credits advisor. Specialist in the repurchase and renegotiation of loans, he will be able to direct you towards the most advantageous solution.