FAQ loan repayment covid

The COVID-19 pandemic has caused numerous financial difficulties for individuals and companies in Switzerland. If you're facing difficulties repaying your COVID-19-related credit, there are several solutions that can help you reorganize your finances and ease your repayment obligations. Here's an overview of the main options available:

Renegotiation with your lender

Credit Term Extension: Negotiating an extension to your loan term can reduce your monthly payments, making repayment more manageable.
Interest rate reduction: Ask for a reduction in the interest rate applied to your loan. A lower rate can significantly reduce the total cost of your loan.
Payment modulation: Some financial institutions offer the possibility of modulating your payments according to your current financial situation, with adjusted repayment periods.

Credit Repurchase (Debt Consolidation)

A credit repurchase involves combining several loans into a single loan, usually with more advantageous repayment terms.

Simplified payments: A single monthly payment at a potentially lower interest rate.
Reduced monthly payments: By spreading out the duration of the consolidated loan, your monthly payments can be reduced, improving your monthly cash flow.
Interest rate optimization: Take advantage of more competitive rates by consolidating your debts.

Prestaflex can help you do this by evaluating the best options available and negotiating with lenders on your behalf.

Using government aid

The Swiss government has put in place various measures to support borrowers impacted by COVID-19. Here are just a few of the measures available:

Emergency loans: Low-interest loans may be available to help cover essential expenses.
Grants and Allowances: Some cantons offer specific grants for businesses and individuals in difficulty.
Deferral of Payments: Depending on your situation, you may be able to defer payments temporarily without further penalty.

It is essential to consult the official websites of the Swiss authorities or contact a financial advisor to find out about the assistance available and the eligibility criteria.

Optimizing your personal or corporate budget

Reassessing and adjusting your budget can help you better manage your financial obligations.

Reduce Non-Essential Expenses: Identify and reduce unnecessary expenses to free up funds for credit repayment.
Increase Income: Explore opportunities to increase your income, whether through overtime, freelance activities, or other sources of income.
Financial Planning: Draw up a detailed financial plan to track your expenses and optimize the use of your resources.

Consultation with a Financial Advisor or Credit Broker

Calling on a professional can provide you with personalized advice and solutions tailored to your situation.

Personalized analysis: A financial advisor can assess your specific situation and propose tailor-made strategies.
Negotiation with Lenders: Credit brokers often have established relationships with financial institutions and can negotiate more favorable terms for you.
Structured Repayment Plan: Drawing up a realistic and achievable repayment plan, taking into account your current and future financial capabilities.

Associations can offer free advice and support in managing your debts.

Declaration of bankruptcy (as a last resort)

If all else fails, declaring bankruptcy can be considered as a last resort to free yourself from insurmountable debts.

Legal procedure: Bankruptcy puts an end to your repayment obligations, but has important consequences for your credit and your ability to obtain future loans.
Legal advice: It's crucial to consult a specialized lawyer before embarking on this procedure to understand all the implications.

Practical advice to facilitate repayment of your COVID loan

Act quickly: The sooner you act to resolve your financial difficulties, the greater your chances of finding advantageous solutions.
Communicate with your lender: Inform your lender of your difficulties immediately so that you can negotiate suitable terms before the situation worsens.
Avoid over-indebtedness: Don't take out new loans to pay off old ones, which could worsen your financial situation.
Follow a Debt Management Plan: Adopt a disciplined approach to following your repayment plan and avoid late payments or defaults.

Repaying a loan taken out during the COVID period in Switzerland may seem complex, but several solutions exist to lighten your financial burden. Whether by renegotiating your loans, buying back credit, taking advantage of government grants or seeking professional help, it's crucial to take proactive steps to manage your debts effectively. Don't hesitate to consult financial experts or consumer associations to help you through this process and find the solution best suited to your situation.