Each loan is a burden, regardless of whether it is payday loan or installment loan. Big enough that sometimes the loans cannot be repaid. This applies especially to installment loans, which have a long financing period. Even if the borrower is certain that he will pay back the loan at the time of borrowing, it may turn out halfway through the repayment that he cannot cope with this task for various reasons. In this case, can he extend the loan repayment schedule?
Iron schedule or freedom of payment?
The loan financing period is a key issue that should be taken into account when taking out the loan. Too short will result in high installments and potential problems with closing the monthly household budget. In turn, too long a repayment period is not only proportionally higher costs of such a loan, but also greater uncertainty. Within a dozen or so months of financing a lot can happen – illness, job loss or a change to a worse paid one.
The responsible person will not avoid repayment, but will certainly be interested in whether it is possible to extend the financing period of the installment loan and, consequently, reduce the amount of the monthly installment. Such a step will involve signing an annex to the loan agreement and establishing a new repayment schedule.
Rescheduling under certain conditions
You can apply for a change in the repayment schedule of an installment loan at any time, however it is best to do it before the repayment date of at least one installment. Not only is this treated by most companies as a necessary condition to be able to apply for an extension of the repayment period, but you can also count on a more convenient schedule for us. Most loan institutions then require sending a completed, ready-made form (e.g. Provident, mentioned earlier), but some of them allow you to make an appropriate request using their profile on the website. You can also meet with the fact that the borrower first contacts by phone or e-mail the loan company and describes his situation in detail, and the company in response sets a new repayment schedule.
Loan holidays – an unusual way to extend the repayment period
In the case of temporary problems, which can be solved in a few weeks, you do not have to extend the loan repayment period, but it is better to take advantage of so-called loan holidays. This allows the payment of one installment to be postponed and to be settled along with the next installment falling on the schedule. It is also a paid service, but it costs less than increasing the number of installments. The good news is that in many companies you can postpone payments up to several times.