Today, there is a serious limit to how much credit we can take, and how much installment we can take, but a major change in our lives is just enough to make it difficult to pay the monthly installment.
We are protected by barriers
Monthly repayments no longer depend on the borrower’s entrepreneurial spirit. The MNB has recently reduced the level of loans with the help (Income-to- Pay-Out Indicator). Today, we can use banks’ money more restrictively, especially if we want a non-fixed rate loan and our income is not over HUF 400,000 .
Despite the debt curb provisions, it is enough to have an unexpected expense, or an unpleasant turn in our lives – divorce, sickness, break between jobs – that will cut back on our reserves and we will not be able to spend the loan as much as we would like. It is no accident that financial experts recommend that we have a minimum of 3 to 6 months’ salary or earnings reserve. Until you do, don’t waste your money.
The bank has many assets
But if we haven’t done that and the repayment is difficult, we still have some tools in our hands. Before we slip significantly into payment, let the bank know that there was a ‘lack of liquidity’. Instead of hiding, let’s try to find solutions together with the lender.
Such can be the redemption of loans. This allows us to switch to a more advantageous construction if we are not yet minus, ie we have paid in all the details so far.
We can request an extension of the maturity
So our monthly installment will be lower. But we can also agree to temporarily reduce our monthly installments for a limited period. Of course, this has consequences: the difference is due to our capital debt.
We can also get a capital moratorium. In this case, we only pay interest, temporarily. Here, when the grace period expires, we must enter the accumulated debt.