What to do if you cannot repay a mini loan online?

A mini-loan is a practical way to obtain a cash advance, which is usually for a much smaller amount than a bank loan, and is intended to cover very specific needs. The amount requested through a mini credit must be returned in a period between 6 and 12 months, at most. Therefore, before requesting a mini credit we must analyze our ability to pay, that is, if we will have the necessary income to return it easily and in a fairly short time. The interests of a mini online loan tend to be high, and if we incur delays, it becomes more difficult to pay.

Mini-loan results

Mini-loan results

Failure to return a mini-loan results in certain actions on the part of the lender. First, they proceed to contact us by not paying the first monthly payment. From there, they start to apply late payment interest, which increases as the days and unpaid installments pass. Also, they proceed to collect a commission of claim for non-payment of fees, an amount that also adds to the initial debt. Additionally, our name can be included in delinquent lists, which would not allow us to have access to bank-type products, and of course, the possibility of obtaining new credits would be almost non-existent. Another possible scenario is that the lending institution chooses to go to court to recover the borrowed amount, interest and late fees, also charging the fees derived from the legal claim.

Maximum of 30 days to pay the mini credit

Maximum of 30 days to pay the mini credit

The most responsible thing before requesting a mini credit is to analyze our finances very well so that we have the assurance that we will be able to pay in the stipulated time; However, we may be presented with certain contingencies that prevent us from returning the mini credit on time. In this scenario, the first thing we should do is contact the lender with the intention of explaining our situation. Starting from there, we can request an extension through which we are granted additional time to stabilize our income, and be able to meet the payment of the mini credit. When we request an extension we have 15 more days to return the debt. We can request up to two extensions, which represents a maximum of 30 days to pay the mini credit. Extensions or deferrals of debt also carry an amount, but significantly less than those we would incur if we delay in returning the mini credit.

In summary, the recommendation is to organize the budget very well so as not to incur defaults of fast online mini loans, and in case of unforeseen events, extensions or deferrals of debts constitute the most viable alternative to continue with our intention to pay the debt assumed.