It always happen that we may be faced with situations where we do not have enough money to do something that we may want to accomplish. So one can decide to borrow a loan from a bank or any financial institution. But even when one is taking a loan, one should always remember that it is payable with an interest.
Paying back a loan if well managed is easy but to some extent, it depends on what you did with the loan that you took. Let’s say that the loan was used on consumption on may be paying school fees or for paying dowry this is definitely negative cash flow because there are no monetary gains. However, if the loan was for investment purposes, this attracts positive cash flow because you will be getting cash from theses commitments.
Nevertheless, taking a loan is one thing and paying back is another whereby you may be faced with challenges that may make you to be unable to pay back a loan. When some people are unable to pay a loan, some go to file injunctions to stop the lender bank from following up the repayment for some time while others go to other financial institutions like a microfinance get a loan again in order to repay the other loan. But in these both cases, it is wrong to do this. So instead of filing an injunction, it’s good to use this money to pay up an installment of the loan.
For one to be unable to repay a loan can be due to genuine reasons like not being paid the monthly salary or you have not yet been paid by those whom you have sold to your products. But before giving up to not being able to repay the loan, you should consider reducing expenses. May be you can decide to move to a less expensive residential house or you can cease using your personal car and use the public transport. One can also sell idle assts like incase you have two cars selling one can be the better option.
Then something else, one can also approach the bank to try to consult on what to do for being unable to start repaying a loan. For instant, the bank can decide to extend the loan period may be five to seven years meaning the installments are reduced. The bank can also go for moratorium due to deaths, a business being burnt down or even due to sickness. This means that one is given a breathing space to be able to reorganize by being relieved may be for six months not to pay or even having interest reduced.