People who struggle with their finances tend to apply for debts. Debts help them to cope with their financial stability and help them to set up a quality life. Debts also come with much responsibility of repaying to the creditor on time.However, sometimes the indebted person is overdue the loan payment period. Debts, when not paid during the loan period, may cause plenty of hazards. When a person suffers from a financial crisis and cannot pay back the debt, the creditor may extend the loan payment period on request. Under such circumstances, you can contact a Chicago debt collection defense lawyer for legal aid during these circumstances.
What are the possible reasons for not being able to pay back the debt in the given payback period?
Here is the list of possible reasons that result in the incapability of the payment of debt during the loan payment period.
- The indebted person is struggling with financial crisis and instability.
- The indebted person has resulted in insolvency.
- The indebted person has resulted in bankruptcy.
Defaults occurred for not paying the debt in the payback period
Here is the list of defaults that may occur to you for not being able to pay the debt within the debt payment period.
- The default occurs when the indebted person does not continue to pay the amount required on the debt.
- Defaults can occur on secured and unsecured loans or debts.
- Defaults by the indebted person may lead to inaccessibility to applications for the loan in the future and also subjects the defaulter to legal claims.
- The rate of interest rises higher on debts.
- There is also a creation of negative remarks on the indebted person’s credit report.
How to request the creditor to extend the payback period
The creditor is the only person that may extend the payback period by looking at the borrower’s position and requests. The borrower may request the creditor by sending a request letter about the postponement of the payment time. The indebted person may negotiate with the creditor about the loan payment period. The indebted person may also opt for legal aid to extend the debt payment period.
Conclusion
One must always try to pay back the debt inside the payback period. But, during unfavorable circumstances, these debt payment periods can be extended by the creditors on requests by the borrower.