If we decide to request and hire personal loans, it is because we are sure that we can return the borrowed money plus the interest within the reimbursement period. However, our economic situation may change, especially now that the labor market still suffers the effects of the crisis. Fortunately, some personal credits include the possibility of not paying part or all of the amount of the installments for a period of time: this is what is known as the grace period.
What personal credits allow you to request a grace period?
In practice, any consumer credit can include a grace period, although it is more usual to include personal loans for people who do not have recurring income, such as students. Another feature of personal loans with a shortage is its term, normally longer than the credits that do not include it.
Depending on the conditions established by the lender, the grace period can be requested at the beginning of the life of the loan or later. In addition, we can distinguish between two types of lack of personal loans:
- Total lack: a personal loan with total lack gives us the possibility of not paying absolutely nothing during a certain time.
- Partial or capital deficiency: on the other hand, if we request a personal loan with a partial lack, during the grace period we will be able to pay only the interest of the same.
The lack of personal loans, a useful but expensive option
Requesting personal loans with a shortage can go very well if we believe that our economic situation may change over the next few years and we foresee that we will not be able to pay the amount of the fees. For example, if we are students and we ask for a consumer credit with a total deficiency of 5 years, we can take our studies and not pay any fees until we finish them.
However, the lack of personal credits is also an expensive option. Let’s see it with the following example: suppose we have a loan of € 10,000 to return in 8 years and 9% APR. In case of not requesting a deficiency, we would pay a monthly fee of € 146.50 and we would end up returning a total of € 14,064.27 to the entity. On the other hand, if we ask for an initial deficiency of two years, we will have to pay the following:
- With lack of capital: in this case, we will pay a fee of € 75 during the grace period and € 180.26 for the rest of the term for a total of € 14,778.28.
- With total lack: if we opt for this option, we will not pay anything during the first two years, but the installments of the subsequent period will be 215.66 € for a total of 15,527.57 €.
Are there other ways to avoid non-payment of a consumer credit?
As we can see, asking for personal loans with a lack can be good for us if we can not meet the monthly payments, but it is an option that has a cost. However, there are other ways to reduce or temporarily eliminate the amount of the fees.
For example, we can extend the repayment period by a few months or years so that the amount of monthly payments is a little more affordable, although, in the end, we will also end up paying more money in interest. Some personal loans offer other options, such as the Cofidis Project Credit. This entity has the “Wildcard” service, which allows the payment of a monthly installment to be deferred without additional cost and without this implying a change in the number of subsequent installments or financing conditions.