A credit loop is a phenomenon that tightens on the borrower’s neck in the case of irresponsible loan selection in relation to financial possibilities, introducing a vicious circle of continuous borrowing to repay previous loans. In Poland, loans have become a way of life. It happens that the loan is the only available solution for unexpected expenses. In fact, people often opt for a loan without first analyzing their financial situation. When we lose a job, or loan installments simply exceed financial possibilities, we often reach for another loan to repay the previous one, thus falling into a spiral of debt.
How to get out of the debt loop?
There are many “home” ways to combat financial failure. First of all, household expenses should be analyzed to limit consumption and purchase of items other than those necessary for functioning. It is also worth considering the possible sale of your property with the purpose of income allowing you to cover your financial arrears against creditors before the bailiff does.
In spite of fear and nerves it should not be forgotten that banks also want to compensate for the situation of indebted people. In the case of random events that prevent regular repayment of loan installments, you should go to the creditor. There is no shortage of advisers in banks who, on behalf of the bank, will be happy to present opportunities to get out of the crisis situation. These are, for example, consolidation loans, temporary suspension of repayment or, in extreme cases, deferred loans. In the absence of contact, we are exposed to unnecessary interest that drives the loan loop. It is also certain that the lender will not leave this matter and will send a message, for which the borrower will be forced to pay.
Take into account the situation of the indebted
In the case of selling debt to external debt collection companies, you should not be afraid of contact – such companies depend primarily on efficiency, hence they are often able to take into account the situation of the indebted, giving at the same time the possibility of spreading the debt into smaller, more favorable installments, and in case of cooperation repeal from penal percentage.
However, if our debt loop results from a random event such as loss of work, and we are bound by a mortgage, it is worth considering a payday market. One-time payday allows you to get the amount necessary to pay the loan installments, giving the opportunity to calmly find a new form of employment. There are many companies on the market that are characterized by an individual approach to the customer. A clear presentation of your financial capabilities, preceded by an in-depth analysis will determine possible conditions that may help, taking into account the fact that many companies offering payday loans do not charge any fees for the first loan. Such an operation, however, requires financial responsibility, because with an irresponsible approach, it can tighten the credit loop even more tightly around the neck.