With the zooming unemployment rates, cash drought and rising costs of loans, an increasing number of borrowers got into arrears on their loans, not affording any longer their monthly credit payments. Wall-Street talked to specialists in financial industry on current situation of loan default rates and solutions that can help borrowers take control of the situation.
Tips from loan brokers
When someone wishes to contract a loan, it is highly recommended for the future borrower to draw a detailed budget of his incomings and outgoings.
“Clients will have to put all spending on a cash-aware control (what is important, expenses you can afford to skip, amount available), according to your income. Accessing a loan requires a medium to long-term budget planning, with seasonal adjustments and solutions in more difficult times or every time your situation changes from the initial one”, said Anca Bidian (photo), CEO Kiwi Finance.
Statistics from other countries, with long lending history, shows that this type of events can appear almost 5-6 times over a mortgage period (unforeseen events – divorces, marriages, accidents, temporary loss of job, relocation, economic contraction, etc).
Kiwi Finance, who gives legal counseling in the precursory phase of a credit contract, noticed that over the past two months, this type of requests came from non-Kiwi clients in the moment of contracting the loan, and now they have to deal with unforeseen events or misunderstood provisions in the contract.
Should we try to renegotiate with the lender?
When credit default issues come to sight, both borrowers and lenders are due to seek a solution to overcome this moment, in the interest of both parties, brokers say.
“In finding a solution to solve this problem, the bank reviews the client’s profile and its prior payment behavior, type and character
