As soon as I took out a loan, I immediately think how to pay it off faster. This is a normal attitude of any person, because no one likes to walk in debtors. According to the law of 2011, borrowers can deposit the full amount at any time. But banks have no right to interfere with this or impose prohibitive conditions for early repayment of the loan.
But if you have found in yourself the financial strength to pay off debts before the allotted time, you must comply with all the formalities. Some are in such a hurry to get rid of bondage that they make mistakes. We will tell about them in this article.
Error number 1 – incorrectly calculated amount
Even financially savvy citizens and those who are friends with mathematics can make mistakes in calculations. It is not uncommon for bank customers to transfer amounts that, it seemed to them, are sufficient for early repayment of the loan. But at the same time, they forgot about some trifles, for example: writing off some “kopecks” for viewing the balance, recalculating interest or something like that. As a result, unpaid funds remained in the account. And banks continued to charge interest on them. If you do not track the situation, then after some time (maybe even a few years) a decent amount will come.
Therefore, the advice: let the amount of early repayment considered for you bank employee. Call, tell about your desire and find out the exact numbers. The easiest way to do this is by dialing the telephone number of the “hot line”, which is available at any financial institution.
Mistake number 2 – excessive gullibility
But you really shouldn’t believe bankers blindly. There are such situations when, with a partial early repayment of a loan, the amount of debt naturally decreases, while interest continues to be charged on the original loan. This can happen without malicious intent on the part of a financial institution, but simply due to the negligence of a specific employee who forgets to put the necessary checkboxes in the necessary document or enter the necessary data.
Unfortunately, such errors can be found only with the next mandatory payment. As a rule, all borrowers receive an SMS message with the amount to be paid. So, if you thought you were being asked for too much money, you can go to the bank and figure it out. The main thing is not to pull with it! The message arrives in advance (1-2 weeks), and if you immediately seek clarification, it will be time to reconsider the amount of the mandatory payment.
Mistake number 3 – repayment without warning
We have already said that according to the law, borrowers are entitled to repay a loan in full or in part at any time at will. But there is also a small reservation. The same law says that in such operations it is necessary to notify the bank. In this case, a specific period is indicated – at least 30 days in advance. Plus, each bank has its own rules, which are spelled out in the contract (of course, in small print).
So it turns out, first let the bank know, then just deposit the money. If you do the opposite, then the staff will regard it as a simple installment of a larger amount on the loan, and not an early repayment. The difference is that in the second case the interest on the loan is recalculated, but not in the first.
Mistake number 4 – repayment of the entire amount.
Many borrowers do not know how the credit system works. They believe that early repayment means the payment of the entire amount, which includes the loan itself, and interest on it, and possible penalties. But actually it is not. Of course, it is good if you have enough money to cover the entire debt. And if not?
Here you can go to the trick and repay only the bulk of the debt, including interest. The fact is that after this all penalties are frozen. And they can already be paid later.
This method is good to use, for example, if you have problems with the payment of the loan and started to incur penalties. In this case, you take a new loan to pay off the old one. But only in an amount equal to the original debt. And already all penalties that began to accumulate immediately cease to grow. And you calmly repay them when the opportunity arises.
Mistake number 5 – documentary confirmation
After you have deposited the entire amount, ask the bank for a special certificate. It should indicate that the debt is completely closed and you have no complaints. This is a formality, but many people forget about it. And sometimes it can go sideways. Again, one of the employees will make a mistake or the amount will be slightly smaller – and the interest will start running again.
And one more tip. To repay a loan in advance is not always good. The fact is that with this you are depriving the earnings of the banks themselves. And they do not like it. And create the so-called gray lists of such overly responsible customers. And in the future there may be problems with obtaining a new loan.