What to do if your extension at the bank has ended and you cannot pay?

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The opinions of the employees of You are personal.

  • Try to lower your debt.
  • Look for alternatives to capitalize on yourself.
  • Pay attention to the revolving loan restructuring.
What to do if your extension at the bank has ended and you cannot pay?
What to do if your extension at the bank has ended and you cannot pay?

Starting this month, the grace period offered by Mexican banks in support of the population affected by the pandemic ends, which essentially consisted of granting a grace period of 4 to 6 months without affecting the creditworthiness of its customers who have no funds during that time after registering with each company in the program.

By the end of July, around 9 million loans had been registered in the program to defer payment of the funding without charging ordinary interest that will be collected later Association of Banks of Mexico (ABM).

Of the registered credits, 3 million 300 thousand correspond to the sector Micro, small and medium-sized enterprises (MSMEs) and business people; 3 million 300 thousand are for credit cards; 2 million 100,000 are in the non-revolving consumer segment (including personnel, payroll, automotive industry); According to ABM, 322 thousand in mortgages and 37 thousand in large companies.


At the end of the grace period, an extension of the deferral of payments was ruled out, and since the banks need reserves, an analysis of each borrower is carried out below in order to offer restructuring or, in certain cases, to maintain support for ABM.

“In the case of debtors, the cost of late payments will increase and we could see a significant increase in bad credit ratings, preventing businesses and households from accessing credit for at least five years. In much more complicated cases, they could be exposed to property liens, litigation and legal costs, ”says Sebastián Medrano, Director of

“More than just thinking about going into debt, one should be prepared not to reduce income and be wary of the temptation to apply for a loan (go into debt) to pay off a debt,” he adds added.

At least half of Mexicans (55%) apply for loans to pay off debts and cover basic economic needs National Banking and Securities Commission (CNBV) and from National Institute of Statistics and Geography (INEGI).

What should I do if the “grace period” has expired and I have to pay for the card but have no job or money?

First of all, you need to understand that the escalation of payments is ending, and the most likely that the banks will not resume it as it will affect their business too. What will happen is that the installments and the minimum payment are back to normal.

The financial services platform makes the following recommendations for people facing credit thawing and lack of liquidity.

  • The first and foremost recommendation, although it sounds difficult, is to bring your debt down and try to pay off at least the minimum balance.
  • Look for alternatives to capitalization, either through asset income (real estate) or through contingent liabilities (digital companies).
  • In the case of revolving loans (like TDC or Loans), you should aim for a restructuring that is not to be equated with an extension, since different conditions apply to the person in addition to a negative effect on the creditworthiness and the relationship with the bank or financially. The customer loses the line of credit or credit card and it is very likely that a negative mark will be left in their credit bureau and they will not be able to get a loan or financial product again.
  • In the case of a mortgage or car loan, it is appropriate to request a prepayment or litigation solution so that the bank or financial company can get the property, item or real estate back.
  • Think twice before getting into more debt or asking for credit to pay off debts. Chances are they won’t even give it to you, and if they do give it to you, they will be expensive loans.
  • Before seeking credit to pay off debts, try restructuring the debt or negotiating a loan. Because of the negative mark on the bureau, they are not recommended solutions, but the non-payment is much worse.
  • Search “soft money”, Cheap loans or no interest, for example between family or friends.
  • Put the farmer (make sure you do it safely, trusted pawnbrokers) at risk of losing the pawn suit if you fail to make payments.

Other ways to get out of bad debt


It should be noted that these options do not “delete” the credit history, but rather represent the most practical solution instead of delaying and influencing the long-term history.

1. Debt rescheduling. The point is to negotiate the loan terms in favor of the customer: either the term or the interest rates. For example, access to fixed payments or deferring payments to lower the monthly payment, but with a higher interest rate or vice versa.

Important: You need to set real priorities if you prefer comfortable payments at a higher cost, or higher payments in exchange for shorter debt. This payment option must be applied for in the first few months of debt as it is not feasible for customers with many months of non-payment.

2. Debt Consolidation. With this option, all debts are combined into one: the bank offers to transfer the remaining amount due from several credit cards to a single item. To be truly beneficial, you need to look for the financial institution that offers the lowest CAT and interest rate.

Important: Not all banks have this type of solution. One of the great things about it is that the other cards are billed and canceled so you only get the annual commissions of a single card. You need to take into account that this option allows you to increase the monthly coverage amount so it is probably better to have several small debts and pay them off in turn. However, if this is more confusing and difficult then you need to think about it while collecting all of your debts into one.

3. Remove. It’s a negotiation with the bank or financial institution to get the debt down. The criminal customer seeks an agreement to get a percentage discount on the debt. This is one of the least recommended options as it has negative consequences for the credit bureau. In negotiating the write-off, the non-payment has to be seen for many months in a row to show that there is indeed no way to resolve the current debt.

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