Deciding to consolidate one’s debts is often a decision that is not easy to make and requires good thinking. This alternative proves to be a solution of last resort to be able to get out of overindebtedness. We offer you effective solutions to avoid falling into certain traps of this type of banking operation.
First solution: extend the repayment period
Negotiating the repayment term in a more conciliatory way could already help you a lot. It is advisable to turn to the creditors and expose them to your situation, be it the bank, the suppliers or even the administration. You are invited to submit a proposal for a deadline, which may be suitable for both parties. To prove that the decision is all thoughtful, it is best to write it down.
To convince more, it is important to provide a correct forecast budget, consistent with your income, also think to keep a reasonable ratio of debt.
Turn to the bank to negotiate the maturity of the loan
The result is not always so positive, but as the saying goes, “who tries nothing has nothing”. In the case where you own a property, it is essential to check if a modularity clause has been put in place. If this is the case, the best solution would be to suspend the loan for a period of up to one year, or to reduce the maturity of the loan.
With regard to consumer loans, when monthly payments become difficult to pay, it is better to try to renegotiate the loan concerned . Such an alternative will have less impact than a restructuring of credits . The financial institution will prefer to turn to flexibility because it will not take the risk of facing an impossibility of settlement of the debts of the borrower.
Advance a proposal of spreading by meeting the organisms
Rigidity in its operation is one of the characteristics of French administrations and procedures often constitute an obstacle. However, this does not prevent them from being more understanding when it comes to a taxpayer with a late payment. The tax administration most often grants an estate tax, housing tax or income tax.
Thus, you can go to the tax center in your area and advance a proposal spread over a few months and it must be done in writing. The answer you will receive will also be in writing. What attitude should you adopt in the process? Clearly state your situation and make a point of honor on your will to want to settle your debts.