My bad credit can affect my spouse

Is my debt affect my partner if we got married?

Paying cash car is not a very common method, so we always end up resorting to funding. In this sense, one of the most common problems is the failure to pay some or letters of vehicle, especially in the current economic environment of the highest unemployment figures in history. Nevertheless, the rate of bad loans has decreased to 10.4% according to figures released by the Bank of Spain.

Now, what happens if we can not afford to pay the loan? First, at the time of signing the loan agreement which specifies the default interest to be applied in case of default. Interest on late in lagunos cases may be up to 29% APR. The situation is complicated when it comes to personal loans as so-called car loan offered by some financial institutions, as well as default interest claim a fee for debit positions, around, 35 euros will apply.

If the debt is not paid within six months, the financial institution may claim for judicial manner may reach seize tlaes goods such as housing, car or payroll to pay off the debt that has been placed as collateral at the time of making the loan .
Solutions avoid defaulting on the loan payment car

Thus, it is clear that the solution is to avoid defaulting because we may lose the car itself, for what we consider a number of alternatives:

1. Extend the repayment period of the loan, or what is the same, extending the term of the loan. For example, if it is financed five years, extending it to eight years, thereby increasing the payment of long-term interests but giving us a break in the immediate short term.

2. Grace period; It is not always possible, but you could try to negotiate a grace period during which only interest is paid and no capital debt is amortized.

3. Lowering the interest rate of the loan. It is agreeing with the bank to renegotiate the interest rate down, for what will be important to assess the type of relationship we maintain with the financial institution and our credit history.

4. Sale of the vehicle. This is the most drastic solution, especially when you consider that at present the valuation of vehicles has plummeted (although Toyota are the least value lost over the years) and may be the case that there Booking domain, imposed by the lender in the loan conditions of the car.

5. Rent our car and get money. It may be an even more desperate, but effective solution. We forgo the use of our vehicle temporarily alquilándoselo someone, obtaining money to meet the payment of the loan installment. In this connection, web pages Social Car can help us?