How to calculate the delay

The reason for the late payment of the next loan payment may be anything: delayed salary, urgent unplanned expenses, illness or malaise, and many other reasons. After all, life is unpredictable, and, fortunately, short delays in payments will not affect the credit history. But the agreements provide for late fees, the amount of which must be able to be calculated so as not to end up with the bank in perpetual debtors.

You will need

• - calculator

• - pencil

• - paper

Instruction manual

1

In order to calculate the delay, we use simple math. Suppose we pay a monthly loan of 5, 000 rubles. At the same time, we understand that in the current month we will not be able to pay the loan on time.

Read the loan agreement. Suppose it states that the penalty is 0.5% for each day of delay. Thus, the very next day after the due date, we will owe the bank another (5000 × 0.5%) 25 rubles. That is, to repay the delay we will have to pay 5025 rubles.

2

Suppose we know that we can pay the delay in 5 days after the payment date. The delay in this case should be calculated as follows.

Debt after 1 day of delay is 5025 rubles. The next 0.5% interest will be charged already on this amount.

Thus, the debt at the end of 2 days of delay will be (5025 × 0.5% + 5025) 5050.13 rubles.

3

Similarly, the delay should be calculated on the remaining days.

At the end of 3 days (5050.13 × 0.5% + 5050.13) - 5075.38 rubles.

At the end of 4 days (5075.38 × 0.5% + 5075.38) - 5100.76 rubles.

At the end of 5 days (5100.76 × 0.5% + 5100.76) - 5126.26 rubles.

Even if we pay the loan in the morning for 5 days, the delay should be calculated for 5 whole days, since funds are debited from the accounts once a day, usually late in the evening.

Now you can correctly calculate the delay, and pay off the debt with an accuracy of a penny.

Useful advice

One of the conditions of the loan agreement is the calculation by the bank of fines for late payment of the next loan payment. Often you can see this wording: "For late payment of the next payment, the bank charges penalties in the amount of 0.5% of the amount of arrears for each day of delay." Thus, already 1 day after the due date, the customer will be forced to pay the accrued interest along with the payment.