Bank loans?

bjenkins12

About 6 months ago I got 500 dollar loan from my bank. I was behind on some expenses so this really helped... not too long after my first payment I got laid off from my job and haven't been about to find one. I recently got a letter from the bank stating that I have to pay back the total amount within 10 days... Will the bank work with me if I explain to them my situation ?

dispatch.o

What were the conditions on the loan? Generally you can't just not pay things for months. What balance do you owe?

Jasconius

you'll probably be charged a fee

will they work with you? probably not. they'll just put you into the red and charge you any fees that come with that

Khavall

They might "work with you" in the sense that they might not, say, send collections agencies to your door.

But you will almost certainly be charged extra interest, fees, your credit score will take a pretty hefty chunk downwards, generally you'll end up paying a bunch more than you originally planned/expected.


Though one thing, when you say that after your first payment you got laid off, were you still making payments, and if not did you contact the bank then? Because if you just sort of stopped making payments with no explanation, and you agreed upon a set payment plan then.... that's going to hurt waaaaaay worse.

dispatch.o

Was this an actual loan or did you fill out one of those pre-printed checks some banks like to send out with a letter telling you that you're approved?

Circumstances being what they are, the difference between the two may be substantial.

Lail

Go talk to someone at the bank. If they think you're good for the loan then they'll work with you and set-up a payment plan and charge you interest.

If they don't think you're good for it then they'll send your account to collections.

Ultimately they do want to work with you because then they get their principal back plus interest and fees.

If they have to go to collections then they sell the debt for a percentage of what you actually owe.

The people at the bank are probably going to be a lot nicer to you then a collection agency will too, so it's in everyone's best interest for you and the bank to work something out.

Thundyrkatz

Your post doesn't really say, so I am just trying to be clear. Have you been making payments all along, or are you in default? I assume that you are in default.

So what do you imagine "working with you" will look like? Do you want...

The bank to forgive the loan? Probably not going to happen

The bank to allow you to resume payments? You will almost certainly have to have some amount of good faith payment on you to convince them that you will get back on a payment plan. like $100 is not unreasonable.

The bank to forgive the penalties you have accrued? If you show up with the balance of the loan and offer to pay them that in exchange for forgiving the penalties, that might BIG MAYBE might work.

Make sure you get any promises from the bank in writing before you hand over any of your cash.

bowen

$500 is not a huge sum of money.

Can you borrow it from someone?

In the future communicate with your lenders in regards to losing your job and other life altering events.