In November 2017, my monthly income decreased by $ 2,300. I lost two sources of income from month to month … unexpectedly.
At that time I had 6 different loans, which I repaid systematically. After losing this income, I decided to choose the next loan to pay back the existing ones, and then the next loan and the next.
I thought that at some point the earlier ones will end and only the ones I picked last year will remain. Unfortunately, a total of 12 loans were made.
The so-called debt loop. I pay all, but in smaller installments, because I don’t want to avoid paying any of them. I don’t know if I’m doing the right thing, paying off the debt in this way.
I’m afraid that eventually the bailiff will come to my door, and I’m afraid of fire … Please let me know whether paying off debts “bit by bit”, I don’t have to fear the bailiff … ? When paying off the debt, I mark in the title> repayment of capital <. A gentleman advised me so … Please answer. Best wishes.
You made a typical mistake that most debtors in your situation make, namely, the day you decided to choose your first loan to pay off your previous loan installments.
Later, as you write, you drew another loan and another until you fell into a debt loop, which can have a “serious hiccup” on your life.
The mistake you made is a standard mistake that most debtors facing financial problems make (continually repaying previous commitments at all costs, despite loss of liquidity).
Unfortunately, you only now know that reaching for more loans without a source of income is pointless right? if you wrote to me when you lost some of your income, I would advise you not to get more loans to save the repayment of these previous liabilities for nothing in the world.
Paying off liabilities in small symbolic installments is a good move, because in this way you show loan companies that you are not going to cheat them and your priority is loan repayment.
However, by paying off debts in this way, you are not able to delay the termination of the loan agreement, which in turn will trigger the activities of the debt collection company and the subsequent lawsuit for payment, followed by debt collection.
Symbolic repayment of loans and payday loans is unfortunately only a temporary solution …
Being in your place, I would definitely first contact all loan companies, asking for patience, because in principle you look at it, in your mailbox even several termination of loan agreements may land at once, which will cause an avalanche of additional fees in the form:
… I want you to be aware of what may be waiting for you.
Unfortunately, but by paying off debts with your own schedule, you are unable to stop the termination of the loan agreement, as a result of which enforcement proceedings may be initiated against you even at the turn of the next few months.
What you need to do is quickly find a way to increase your income to close all loans taken out as soon as possible. You can try to find a new better-paid job, extra work, or doing overtime.
It is also worth considering whether it is possible to travel abroad, thanks to which you would pay off a huge part of the debt, or even its entirety.
Also consider selling assets you own that you don’t need to function. An extra cash injection is another step to getting out of debt.
It’s also worth considering borrowing money from a family member or friend. Of course, provided that it is an interest-free loan.