Did you get a prompt? Perhaps a good solution in your case would be to replace the payday loan with an installment loan. Thanks to this, you can pay your debt in installments tailored to your current financial situation. If you are interested in this option, check the following installment loans.
Pay off your debt in installments
What is the prompt?
A reminder is a document that the loan company sends to the debtor when he has not previously informed her about possible problems with paying the debts. Despite its official character, the prompt is, however, a safe hand out to those in debt. It is to be an incentive to settle the payment as soon as possible.
In what form does the prompt come?
Currently , loan companies use various forms of prompting: in addition to traditional letters, you can also meet with phone prompts and in the form of SMS messages and electronic letters. Very often the prompt procedure is preceded by so-called payment monitoring – the lender contacts the borrower by phone to find out the reasons for not returning the money.
What does the prompt consist of?
In order for a prompt to be considered binding, it is necessary to include several items in it. Here they are:
1) address details of both the lender and the borrower (however, if you are a natural person conducting business activity or a partner in a civil law partnership and commercial partnership, the letter may also be sent to your home address or to the address of your partner);
2) a call to settle the obligations of a loan agreement (something like: “Pursuant to Article 455 and Article 476 of the Civil Code (consolidated text: Journal of Laws of 2014, item 121) we call to settle the amount due as below statement … “);
3) payment document number – invoice number (or invoices if you have not fulfilled more than one contract)
4) the amount of your debt (but without specifying the amount of interest) and deadline for repayment of the liability
5) lender’s bank account number;
6) a warning that if you continue to delay repayment, the loan company will take appropriate steps to force a refund.
What threatens me if I don’t settle my debt?
The lender can refer your case to a debt collection company, take you to court (to obtain a court order for payment). By prompting, your lender not only wants to motivate you to return the amount you borrowed, but also to preventive warning of very serious legal consequences. Also remember that a correctly written prompt (containing all the elements listed above) will be important evidence for the lender if the case goes to court. Any deficiencies in its content may be an opportunity for you if he wants to seek justice before justice.
See more about the consequences of non-repayment in the article WHAT’S GOING TO ME IF I DO NOT REPAY THE LOAN?
How do loan companies send a prompt?
Patience, as well as the costs and forms of prompting non-banking companies, vary widely. In most cases, you should expect the first prompt between 7 and 20 days from the original date of payment. Some lenders may send you a reminder up to 60 days after the contractual deadline. As you can see, deadlines for sending reminders may vary. For example, TaniKredyt provides in its framework loan agreement information that a written reminder will be sent to the borrower twice a month after a delay in repayment. The interval between one prompt and the other will be at least 10 days.
How to avoid being prompted?
To avoid having to pay for prompts, we can use two solutions. The first is to submit an instruction to refinance the payday loan before the end of the loan period. As a result, the repayment deadline can usually be extended by 7, 14 or 30 days. However, in this situation, we are required to pay a fee equivalent to the capital interest contained in the contract, and our company is the new lender who granted us a loan to pay the previous liability. Whether such a solution pays off or better to pay the fees associated with the delay depends on the price list of the company and how long the delay will be. However, it is better to sleep peacefully and use a proven solution.
A consolidation loan is another option that works well for several outstanding loans. In order to convert several liabilities into one, it is best to submit a loan application in installments in the amount corresponding to our debt and the repayment date with payments corresponding to our financial capabilities.