And this financial discomfort arises because, before the economic crisis, many loans were issued in the country and now borrowers are simply unable to repay. The money received on the loan has long been spent, but many people in Latvia are not able to repay their debts every month.
Bankruptcy is a procedure that is not easy to go through
And even after you are declared bankrupt, you will still have to pay off your pre-paid credit for some time. However, you will be released from the full repayment of the loan amount. As a result, you will say goodbye to your financial obligations and start your credit history from a white background.
After a bankruptcy procedure, every “bankrupt” wonders how to proceed from a financial point of view: to borrow money again from the bank’s big expense of getting a loan, or rely solely on your own “money”, that is, your money.
There is nothing wrong with the concept of “credit” in itself, and a loan often helps to overcome financial difficulties and get the budding businessmen on their feet. Loans allow your users to buy their home when the buyer is in dire need of a purchase. In terms of solvency, you will not be interesting to banks and financial lenders. Applying for a long-term loan is unlikely to be approved by anyone.
If you have recently gone through insolvency proceedings, then you probably have nothing left because your property has been sold at auction to pay off your credit. Undoubtedly now, with a clean credit history, you will want to go back to your former condition and buy a home, car or other valuable property that you previously owned.
Only you will not be able to apply for a car loan or mortgage right away: creditors will not treat you as a bona fide customer, because once you have not dealt with your obligations, there is a possibility that the situation may recur. Therefore, you have a long way to go to rebuilding trust: Banks and private creditors need to start trusting you. To make it happen, start with a small one: Make a phone or any other credit purchase that you can easily repay.
Once you have canceled several small consumer loans
You can move on to credit card processing. It is not worth hoping for a large amount of credit limit : initially it will be minimal. The main thing you need to do is to follow a strict repayment schedule, successfully repaying all your financial obligations.
If you want to apply for a cash loan, be prepared that the annual loan rate you choose will not be very beneficial – it will be as high as possible. This commission is a fee to the creditor for the risks he or she will bear in granting the credit directly to you.
When your credit history is filled with details of successful small loan repayments, you will begin to build trust with the big creditors as well. You may even be able to apply for a large loan , though not the first time you apply.