Repayment of Loan amount
5 months ago
Hello Sir,
This is Naveen from Hyderabad. I have an unpaid personal loan of 330000 from Bajaj, where I have paid an interest of 4900 every month for 2 years. I lost my job in pandemic and I was not in a position to pay the loan.
Recovery agents started visiting my relatives house and started threatening calls and I was forces to sign some papers which I ignored. I was ready to do a settlement of 50000 in EMI's but they said it's not possible. Please help how to deal in such situation.
A.Dear Client,
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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A.Dear client
Try to communicate with the lender directly. Explain your financial situation and inquire about the possibility of restructuring the loan or setting up a more manageable repayment plan. Review the terms and conditions of your loan agreement. Some agreements may have provisions for temporary financial hardships. Understanding your contract can provide insights into your options. If you're unable to repay the full amount, you may negotiate a debt settlement with the lender. This involves paying a lump sum that is less than the total debt. However, lenders are not obligated to agree to settlements, and it may impact your credit score.
Try to communicate with the lender directly. Explain your financial situation and inquire about the possibility of restructuring the loan or setting up a more manageable repayment plan. Review the terms and conditions of your loan agreement. Some agreements may have provisions for temporary financial hardships. Understanding your contract can provide insights into your options. If you're unable to repay the full amount, you may negotiate a debt settlement with the lender. This involves paying a lump sum that is less than the total debt. However, lenders are not obligated to agree to settlements, and it may impact your credit score.
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