Help with payment difficulties

If you do not pay back a loan, you may get a payment default entry

If you do not pay back a loan, the lender may charge you overdue interest. On certain conditions, the lender may also terminate the credit contract, demand that you pay back the whole unpaid amount in one instalment, take back the goods you bought on credit, or impose other penalties.

An unpaid loan may result in a payment default entry, which will make your life difficult in many ways. You may not be able to take out new loans or get a credit card, and you cannot conclude contracts on paying by instalments. You may find it difficult to get a rental apartment or a job, and you may be asked to provide a security to get a mobile phone subscription.

If you have payment difficulties, contact the lender

If you cannot repay your loan on the due date, you should contact the lender and agree on a new due date or make a payment plan. For example, you can ask the lender to allow you a month without payments. During this month, you will pay the interest but not make repayments of the loan. This is often less expensive than taking out a new loan.

If you can agree on a payment-free month with the lender, you should also try and negotiate on a suitable repayment arrangement for your needs. For example:

• you pay two instalments in the following month;
• the unpaid amount is divided over the remaining payment period;
• the repayment period is extended.

Check how the shortening or lengthening of the repayment period would affect the monthly instalments. Compare the monthly instalments to your available income and choose the option that is best suited to your needs.

The more loans you have, the higher your costs are. Try to negotiate with the lender on combining small loans into one larger and cheaper loan. This means that you can save on loan costs.

The costs charged for lengthening the repayment period are restricted by law

A company may charge you at most EUR 5 for lengthening the repayment period of a loan before the due date if the repayment period is lengthened by at least 14 days. However, the total amount of fees charged may not exceed EUR 20 a year. The maximum amount of fees charged for lengthening the repayment period is also limited after the loan is overdue.

Read more about debt col­lec­tion and pay­ment arrange­ments

Financial and debt counselling can help with debt problems

If you continue to have problems with debt, contact a financial and debt counsellor. For example, financial and debt counsellors can help you to assess your financial situation and negotiate with lenders.

Read more about financial and debt counselling on the website oikeus.fi