Nowadays, whenever we need money, we can easily borrow it. An easy loan for those in debt is available without leaving your home. It doesn’t matter how much we need: USD 1,000, USD 5,000 or even 25,000 USD. If we can get additional financing so simply, we must quickly give it away.
Depending on the period for which we will take the loan, you must pay the installments on time. We can get a prompt in case of delays. What should you do with him? How much does it cost?
What is the prompt?
Simply put, a notification is a notification about the lack of payment for a financial liability. In most cases, you will receive a prompt 30 days from the installment payment date. The company where we owe money will be effectively reminded of it. They can call us, write sms or e-mails. Less and less common, however, there are companies that use representatives who can visit us in person. Every way is good to collect the money owed.
Each sending of a reminder to the debtor works in favor of the creditor and serves as evidence if the case goes to court. It is the fact that the creditor has tried in every way to communicate with the debtor. And the lack of response to the prompt is an act detrimental to the loan company.
What does the prompt contain?
The correct prompt should contain detailed debt information, such as:
- loan / credit agreement number;
- the amount we have to pay;
- deadline by which the debt must be paid;
- account number to which we should make a payment;
- information on the consequences in the absence of payment.
If you are unsure or are wondering where the amount to pay came from, we can contact the creditor directly and ask for everything.
The loan company may contact the debtor within a few days of the payment deadline before sending the notification. Prompting is the last resort, so the creditor will try to settle the matter sooner.
Prompt – what should you do with it?
When we received a prompt, or even a few, it means that the situation is serious. Lenders are trying to convince us in this way that a quick payment of arrears works only in our favor. Otherwise, the case may go to debt collection, and if that doesn’t work, the court is the last resort. We can’t live with impunity if someone has lent us money and we don’t want to give it back. Underestimating the notification has big consequences, because prompting is the last step before you direct the case to court.
If the prompt reaches us, it means that our debt exceeded USD 200. For smaller debts we should rather not get this payment notification. Each day of delay increases interest, so our reaction is very important here. If we deny the deadline, we can finally send a letter of antidecision action .
How much does the prompt cost?
The debtor bears all costs associated with sending a reminder to him. It all depends on the lender’s individual price list. Sending a notification by mail or sms should not exceed several dozen dollars. The most expensive cost is an individual visit of the creditor’s representative to our home. Then the debtor can spend over one hundred dollars out of his pocket. Interest should also be added to this amount , which is calculated for each day of delay.
If you want to avoid the cost of the reminder, it’s best to get along with the creditor before sending it. We can arrange to split the debt into installments, extend the loan period and avoid lost money for reminders. This solution is very beneficial if we are in a difficult financial situation and we know that it will not improve for several months.
Prompt – how to avoid it?
The most beneficial solution for the debtor is to avoid a situation where the creditor sends reminders. We can avoid this by keeping the repayment deadline. If we are 1 or 2 days late, no one will have any claims for this reason. Longer delays may cause us to be exposed to calls from a loan company.
The sooner the better! Random situations can surprise us at any time. At the moment when we know that our financial situation is very bad and there is no reason for it to improve over the next few months, it is worth informing the lender about it. Together, you will surely find the best solution in this situation, because he also wants the loan to be repaid at the agreed time. The lender’s ignorance of our problem may result in sending reminders that cause unnecessary expenses on our part.
In this situation, you should not be a claimant and do not refuse a proposal from a credit company. Having a problem with repayment it is the lender who is in the winning position and if he offers us a solution then we should agree to it. Otherwise, we will receive notifications and the case may go to court and later for bailiff execution.