Wednesday, June 03, 2020

Overdue installment: number of borrowers growing in financing

The share of debtors who are late in mortgage financing has tripled in the last year. What was the dream of home ownership is becoming a nightmare for Brazilians who are unable to pay the installments because of the crisis.

Mortgage financing was the fastest-growing form of overdue debt among eight types of credit lines that were surveyed by the Geoc Institute. The institute brings together 16 collection companies that seek monthly debt settlement of 30 million Brazilians who have arrears.

Late installment

In 2016, 15.2% of Brazilians stated that they have been in arrears for more than 30 days according to the survey. In 2015 this number was 5.6%, which already represented more than the one registered in 2014 (4.2%).

According to experts, this growth is not a surprise. With the increasing financial crisis in the country and unemployment, many people were getting indebted and without source of income to honor the mortgage payments.

Proof of this is that class C was one of the most troubled with late payments. And with the prospect of rising unemployment in Brazil, it is believed that the number of delinquents will increase when it comes to the late payment of home ownership.

What happens if I have a late payment?

money loan

When the borrower of a mortgage is in arrears, he will pay interest for it, according to the established contract. However, nowadays, when there are more than three late installments, it is already possible for the lender to put the property up for auction.

How to regularize the situation?

money loan

One of the options to regularize the default situation is to get the bank or financial and ask for a debt renegotiation. There are options like the Clean Name Tag that help in this process.

Another option is to try to push some debt until it stabilizes. But it is important to be very careful about this, so as not to make it snowball.

Applying for a loan to repay a loan, for example, may seem like a good idea at first, because rates may in some cases be lower. However, if you still have installments to repay and are unable to pay them, you need to calculate whether you will be able to pay the installment + the new installment.

Be very careful that credit is used wisely and does not cause you to have more financial problems. Remember that defaulting on two lines of credit may cause the amount you owe to grow very quickly.

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