A loan extension can save you in case you can’t pay on time! The end of the month is approaching, as well as the deadline established for the payment of that loan you requested. You do not know what to do and you fear the financial problems that can be caused by passing this deadline.
Do not worry! Lenders are scary, yes, but they are not complete monsters without a heart. In case you do not have enough money to make a payment on time, you can request an extension directly with your lender and get that valuable time to raise more money. Here we explain how:
What is an extension and what does it consist of?
An extension of the loan is, in a nutshell, an extension of the deadline for making a payment. That is surely like music to your ears. But you should keep in mind that they are not easy to get, so always do your best to pay the amounts established on time and without excuses.
When requesting a loan extension, a series of requirements must be met (which we will mention later). If your request is accepted, the lender gives you an extra period of time to collect the money needed to make the payment. Different entities can offer varied options in terms of time depending on the payment that has to be made and the financial complications that present. Or, in some cases, you can opt for a preset deadline yourself. There are very specific situations in which the lender grants an extension of the loan, therefore always make sure you enter these exceptions if you do not want to have legal and financial problems in the near future.
Steps to request an extension
Thanks to the internet, it is now very easy to apply for this type of benefits without having to go directly to the bank or lender, but you should always make sure that you meet the correct requirements.
- Credentials When requesting an extension of the loan, you must have on hand the folio or number of the loan, the calendar that reflects the days scheduled to make the payments, and receipt or history of the last payments made.
- Go to the website or contact information of the lender. Normally it is not necessary to go to the physical headquarters of your lender. Usually, this process can easily be done through the internet or through a phone call.
- Make the payment. It may seem contradictory, but extensions are not free. There is an additional cost for requesting one that must be paid before it can take effect.
Be sure to make the payment before the deadline of the month
Once you have done these simple steps, and your extension is approved, you can breathe more quietly for a moment and enjoy some extra time. Keep in mind that an extension generates additional interest, and the longer the term, the higher the interest to be paid.
If after requesting an extension you still do not make the payment on time, this will be reflected in your credit history and negatively affect your bonds, in addition to increasing the interest you must pay. If this becomes a very big problem, we recommend that you seek advice on how to keep your debts under control or acquire a source of extra income. You can also set up an account to save your savings. Not all money necessarily has to go to pay off your debts. It is good to have savings for emergencies and thus avoid problems and problems.