Secured Loans

Can I Restructure my Loan?

Restructuring a loan can be of great help to families and individuals who are having difficulty in repaying their debts. In the event that an individual cannot repay the money which they owe, they can opt for a restructure, that is, that they an approach a company which will liaise with their loan company, taking steps to alter their loan so that it will be easier for the customer to pay it back. This can mean the loan company writing off some of the value of the loan as well as the customer scheduling the repayment differently and using different accounts.

Financial Standing

One of the factors which companies will take into account before they agree to a secured loan restructure is the financial standing of the indebted person. It is important to remember that remember that most restructuring plans involve the loan company getting less money back than the original loan. This means that it will only be in their advantage to agree to a restructure if the customer is in a sufficiently had financial state such that they are very likely to default on their debt. If this is not the case, the loan company would rather have their customer pay back loan in full and get the entire sum returned.

The criteria will vary according to the company which provides the loan and the company which does the restructuring. However, the customer will often have to be a certain number of payments behind in order for them to be eligible. In addition, the companies involved will do some calculations involving their costs of living and their incomes, and will determine how well off the customers are. If the companies then determine that the customer is in a sufficiently needy state, they will be able to restructure.

Starting the Process

Getting a loan restructure started will involve the customer making contact with the loan company to inform them that they are having trouble managing their debts. It is best for the customer to make this step with a letter to their company. The letter should, foremost, be factual, otherwise it could mean serous trouble for the customer. In addition, they should put across their case in as much detail as possible, making a good case for how unfortunate their situation is and how they will not actually be able to pay back their loan, if their lender accepts their reasoning, they will usually be allowed a restructure.

The loan company may not agree immediately, or may not offer terms which are beneficial enough for the indebted person. If this is the case, the customer may want to involve a restructuring company, or may even want to involve them from the beginning. These firms will offer their services to indebted people, and will communicate with lenders, using their expertise to get their customers a better deal. Some charities also offer a similar service, which can be a great asset for people who are having trouble with their debts.

Getting a loan restructure can be a great help to a family or individual, though whether it is available to them is not always for certain. It is useful for them, therefore, to research their lenders policy on renegotiating loans, and whether it is likely that they will be able to get a restructure. In addition, it is also very useful to get financial advice, or even financial assistance from a loan restructuring company or charity. Through hard work, getting all the information which is necessary, and through perseverance, most indebted people should get the help which they deserve.