Loosing repayment of payday loans and credits does not bode well. However, we should remember that we also have certain rights as debtors. So how does it look when we do not have the means to repay the debt and when can we count on the bailiff’s visit?

The scheme usually looks the same. We take a payday loan or credit when we are in good financial condition, then an unforeseen situation occurs, for example, loss of a job, which causes that we do not have enough funds for installments. Usually a few-day delay in repayment does not bring any negative consequences, but we can get into trouble after just one month from the date of payment of the last installment.

If we do not pay the installments and at the same time we have not contacted the institution that lends money, its employees will try to contact us. At this stage, it is worth thinking about spreading the debt into smaller installments that will fit into our budget. Usually, banks and payday loan companies go hand in hand to the customer, although some may require additional fees for changing the terms.

The best solution in this case is to contact the lender yourself and set a new payday loan repayment date convenient for you. Some payday loan companies also offer so-called “repayment holidays” which consist in a monthly break in the repayment of capital. For example, Aasa offers such a possibility.

At the beginning, debt collection

If we do not take the initiative to face our financial problems, the debt collection begins. Banks and payday loan companies cooperate with debt collection companies that specialize in debt recovery. Their task is so-called amicable debt recovery. It mainly involves calling the customer and sending letters to communicate on the issue of repayment of arrears.

The debt collector reminds the debtor about what threatens him, persuades him to repay the debt, also with the possibility of its spreading into smaller installments. However, he can not harass and blackmail the debtor. We do not have to let him in at home. However, it should be remembered that avoiding contact with the debt collector certain consequences, which will not avoid the repayment of liabilities anyway.

The bailiff recovers the debt

If the debtor is not willing to cooperate with the debt collector, he avoids contact, he does not repay the debt, in which case the matter is usually passed to the court after a few months. If the trial ends unfavorably for the debtor, then the execution may be carried out by the bailiff.

At the beginning, the bailiff usually wants to pay for work. According to the regulations, however, he can not take the whole sum, but leave it that is possible to exist. It can also carry out bailiff’s occupation of the property indicated by the creditor, for example, it may be a car, RTV equipment, real estate. The debtor is additionally charged with the costs of enforcement proceedings, i.e. remuneration for the bailiff.

Entry on the list of debtors

It is also worth mentioning that if we do not repay debt within 30 days, information on this subject will go to the “black lists” of debtors, for example in BIK databases and other information offices. They lower the customer’s scoring, ie the number of points expressing his creditworthiness. As a consequence, we may have difficulty obtaining a payday loan or credit in the future, because we will be listed in the database as an unreliable customer.