A person who can no longer repay his credit must react quickly so as not to let the situation get worse. She must take certain steps to improve her financial situation in order to settle her debts.
In the event that the problem becomes inextricable, it is important to seek an amicable solution with all the actors concerned to facilitate the way out of the crisis.
The right reactions to have from the start
As soon as you experience difficulty repaying your monthly loan payments, you should discuss them with your bank or the lender. Concretely, it is a matter of exposing your situation by sending a registered letter and requesting a reduction or a postponement of reimbursements.
Banks have several alternatives to help you overcome this difficulty. It can be a credit buyout with more advantageous conditions for a single loan or a combination of several loans into one. It is even possible for you to negotiate a new structuring of your credit to extend the repayment period and reduce the monthly payments.
When and how to contact the mediation service?
In the absence of a response from the bank, and this, within one month or in case of refusal, it is advisable to turn to justice and to use the mediation service. This mediation is entrusted to approved professionals, namely bailiffs, lawyers, notaries and public (CPAS) or private (ASBL) services.
Governed by the law of June 12, 1991, mediation aims to reconcile the interests of the debtor with that of the creditor. After estimating the income and expenses of the first, the mediator proposes a new repayment schedule which guarantees the periodic repayment of the loan while allowing the debtor to lead a decent life. The collective debt settlement plan thus established is called amicable if it is accepted by all the parties. It is called a judicial plan if it is imposed by the judge.
What about mortgage credit?
The lender can take possession of the guarantees put in its possession in the event of default by its client. It can be a bond, a salary transfer or any other means of reimbursement. If this solution is not possible or does not allow it to recover its due, a foreclosure of the building put into mortgage can be implemented.
How to protect yourself from a payment default?
Credit is a contract that commits the future borrower. It is therefore important to carry out a precise assessment of his professional situation and his repayment capacity before taking out a loan. The seniority, as well as the financial solidity of the employer, must be considered with care to be sure of being able to honor his debts. You should also, as far as possible, refrain from taking out several credits at the same time.