What to Do If We Cannot Repay a Loan
Automatically translated summary. The full text is available in Romanian.
An information note from the National Bank of Moldova and the Independent Think Tank “Expert-Grup”, produced under the National Financial Education Campaign, explains how borrowers should act when they can no longer meet their loan repayments, and which mistakes to avoid.
The note stresses acting early: borrowers should contact their bank before the loan becomes overdue, because afterwards the bank is far less flexible and no other bank will refinance an overdue loan. Options include restructuring, temporary help from relatives or friends if the difficulties are certainly temporary, selling non-essential assets to make a partial early repayment, or selling or exchanging a pledged property for a cheaper one.
If payments are missed for several months, the bank may take possession of the pledged asset and sell it at auction, possibly below expectations, while charging penalties. Borrowers should not wait for a miracle, count on renegotiating after default, take another loan to pay instalments, or confront the bank. The recommended steps are to analyse the budget, seek extra income, consult a specialist, contact the bank and consider long-term solutions.
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