When it is no longer possible to repay a loan or a loan, the most recurrent fear concerns the possibility of being called to answer before a judge.
However, if the relationship between creditor and debtor is ethical, transparent and honest, it is possible to identify together the most congenial solution for both, perhaps with a repayment plan that allows the debtor to pay the debt without upsetting his financial balance. In this situation there are two fundamental factors to be taken into account:
- Sustainability of the installment;
Sustainability of the installment
If the creditor performs an effective advisory function towards the debtor, verifying what his real financial resources are, he can:
- plan and obtain the return of the sum loaned;
- allow the debtor to pay the due balance on a regular basis without weighing down on the family budget.
Example: Carlo has a dependent family consisting of a wife and two children, a monthly income of 1,500 euros and a debt that fails to repay because his expenses amount to 1,200 euros a month, including rent (500 euros). Since the residual income is low, ie € 300, the average payment that Carlo should pay to repay his debt should not exceed one third of that amount (€ 100).TimeAs is logical, the debtor will pay off his debt as quickly as possible, the higher the amount of the monthly payment he will pay. However, it is important that the creditor is able to estimate the real sustainability of the debtor to pay a certain monthly amount. If you try to contract installments of too high a sum, it will only deteriorate an already precarious situation. For this reason it is important to evaluate the financial situation of the debtor in the long term and carefully, also foreseeing possible variations over time. Example: Carlo may have greater financial resources in some months of the year in which, for example, he does not incur school-related expenses for children.Only by paying your debts you can access any new credit lines and plan investments to improve the quality of life of everyone.