Thursday, 24 July 2014

Debt repayment - for what and how much

Taking out a loan or a loan analyze the interest rate, fees for providing liability if its length. Rarely, however, we assume that due to negligence or temporary financial hole, we will not be able to pay the installments of the loan period. So we omit the amount of costs of debt collection actions, and these, unfortunately, can be considerable.

Any additional costs

Forgetfulness can also cost us a lot in paying back the loan. Just a slight inattention, or temporary lack of money in the account to the bank to be able to - as indeed with the agreement signed by us and the table of fees and charges - we charge the cost of downloading outstanding debt. These actions may have with the different nature - it can be sending a text message on our cell phone number given to e-mail, and even visit a bank employee in our house.

How much it will cost?

The cost of each collection activities is not constant at various financial institutions. Some banks perform some of them free, others they charge for absolutely every effort in reminding us of the outstanding installment payments. Do not be surprised at such a vindication of their policy, it may be because a sizeable source of additional income for banks, and so:

- SMS message: the most convenient form for the bank reminders of overdue installment. If the bank did in fact implement such collection activities, each SMS sent to us unless its giving is free, can deplete our balance by the amount of one or two dollars.

- Written reminder: its preparation and sending is not true nor complicated, nor does it require too much effort, because these messages are usually performed automatically by a special system. This does not change the fact that the written warning can pay from a dozen to a few dozen dollars.

- The phone bank employee hotline telephone to the late borrower is one of the most efficient forms of recovery of the outstanding dues. For telephone call center employee, however, the bank may cancel up to fifteen dollars.

- Intervention home visit: the most expensive and not used by all banks form of late payment reminders. The costs vary considerably between individual banks, but the price range of the intervention visits borrower is from 50 to even 110 dollars.

Redo actions

But this is not the end, as if in a certain (fixed with a bank employee or designated in writing, or in a text message) within not pay installments, the bank has the right to renew the debt collection activities. It simply means that after a certain time we get another letter or an SMS. In this case, our account charged to costs of both debt collection activities.

In conclusion, before entering into a loan, or a loan's see exactly how much we will pay not only for the value of the bank due to interest and fees, but also for the eventual recovery.

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