For non-bank loans, it often happens that people misrepresent their financial possibilities (or unexpected expenses) and are unable to repay their credit on time. Often this happens with short-term SMS loans, which are usually a maximum of one month. In such a situation, however, it is not necessary to hang your head – these loans are usually easy to extend and, after paying the set fee, you are postponed for example by a week, 14 days or a month.
How is the loan extended?
However, it is only possible to extend the maturity if the client pays the applicable fee first. Each credit company has a slightly different set of maturities, but maturity is only postponed. The fee for deferring installments is paid by bank transfer to the bank account as well as the installment itself. Interestingly, many providers can repay the repayment of the loan, so the client can only pay more on these charges than he originally borrowed.
What are the risks of deferring the installment?
The risk is mainly due to a significant increase in the loan – fees are usually not very low, in addition, if you postpone the installment several times, it will unnecessarily pay much more than necessary. But a much worse solution is the so-called shoving of the head into the sand – if you take any loan and then do not respond to the repayment calls at all, the debt can grow to giant proportions. Especially for some non-bank companies, a small loan can give you a high debt, and eventually you may also have to execute your bank account, salary or property.
When arranging a loan, always think in advance whether you are able to repay it properly and do not take a loan when you really do not have to. Always keep an eye on the repayment term, and if you find that you can’t make it in time, be sure to communicate with the credit company – it’s always better than doing nothing.