The purpose of fast loan is to provide short-term funds for emergency situations such as unexpected car failure. They do not intend to use it as a long-term financial solution. Therefore, the repayment time of fast loans is usually very short, ranging from one week to 30 days or 35 days.
However, on the payday, it may be impossible to pay the borrower as scheduled. Although this may be disturbing, you should not panic. You must not try to evade your creditors. You can choose to repay the loan without bankruptcy, causing minimal damage to the credit report. The key is to act quickly and decisively and ask for help from a third party when necessary.
Pay day contacts with the borrower.
If there are fast loans that cannot be repaid, the first step is to approve direct loans, place long-term orders or cancel regular payments. This prevents payday lenders from trying to withdraw funds from your account and avoid overdrafts. Your second step is to contact the borrower directly. Explain your situation as transparently as possible, and you want to develop alternative payment arrangements that are acceptable to both parties.
Many borrowers will give you the opportunity to “borrow”. “Rollback”; the principle of the loan is that if it cannot be paid in full, only the interest will be paid. The temptation to accept such proposals should be resisted. This is especially true if you know that you cannot pay in full on the next due date. Instead, you should be prepared to propose alternative deployments that you have developed. In this way, the loan can be repaid without “loan”.
Prorated quotation
Prorated services will be paid based on your available disposable income. The proportional distribution system is a system in which the court decides the reasonable payment capacity of the debtor. Most creditworthy creditors, including many fast loan borrowers, will accept a repayment plan based on a proportional system.
For example, you can repay your debts with disposable income of 200 pounds per month, but you owe the borrower a on the pay day 2000 pounds, the borrower B on the pay day 1500 pounds, and the total debt 3500 pounds. First, the amount you owe Borrower a multiplied by your available income amounts to 400000 pounds. If this figure is divided by 3500 pounds, it will result in a monthly payment of 114 pounds to borrower a. The amount to Borrower B multiplied by the available income amounts to £ 300000. Please divide this result by the total debt of £ 3500 and pay a total of £ 86 per month to Borrower B.
Contact external intermediaries
If one or more borrowers decline to provide a pro rata loan or other repayment plan, seek help from an external broker. Many organizations, such as StepChange Debt Charge, National Debtline and Citizens Advice(England, Wales, Scotland, etc.), will provide free advice to borrowers and negotiate different payment schedules with creditors. Generally, you can make a satisfactory repayment plan through one of these institutions without bearing the cost of making a debt repayment plan with the enterprise debt management company.
Loan plan budget
If you or your partner enjoys income support, jobseeker allowance, employment and support allowance or annuity credit for at least 26 weeks, and the current amount owed to the social fund does not exceed 1500 pounds, you may be eligible to borrow money from the budget loan project managed through the social fund. If you have paid rent, family expenses or job related expenses through the fast loan, you can repay the fast loan in the budget loan project.
You must complete the SF500 application form and return it to the Jobcentre Plus office in your area. If the budget loan application is rejected, you can contact the Jobcentre Plus office within 28 days to explain why the application needs to be reviewed. If still unsatisfied, the petition can be upgraded and reviewed by an independent case examiner, who must complete the review within 21 days.
