According to the loan relationship, anyone who uses funds must bear the interest on the funds. As for the problem that the interest payment has exceeded the principal, it is normal. Because interest is determined by the interest rate and the length of use, the longer you use it, the higher the interest rate, and the more interest you have to pay. Calculated by the highest interest rate standard of private lending supported by law before August 20, 2020, when the service time reaches 5 years, the interest paid is equal to the principal.
Therefore, even if you are sued, you can only face it correctly and respond positively from the perspective of taking responsibility and fulfilling obligations.
First, adjust the mentality, face the accused, don't panic, stay calm, and regard the accused problem as a normal behavior that should be faced.
Because you can't repay the principal temporarily, creditors can't give up on their own initiative just because you can't repay it. You can only understand that the creditor's lawsuit is correct, reasonable and legal. When you have this understanding, you can keep a peaceful mind and support creditors to safeguard their legitimate rights and interests according to law. No matter how creditors defend their rights, you should fully understand him, actively support him and cooperate with him with humility. This is the minimum moral cultivation and positive attitude. Such an attitude can at least give creditors a good view, calm their emotions to the maximum extent, and create a better atmosphere for solving problems through consultation in the next step. With this kind of thinking and mentality, you don't have to be afraid of being sued, because the court serves both parties, and you can just take advantage of the opportunity of being sued to change passivity into initiative, properly resolve disputes, and relieve great pressure for yourself and creditors.
I believe that the court serves both parties, not just the plaintiff (creditor). Therefore, keep a calm and peaceful mind and arrive at the court on time to answer the lawsuit. Instead of letting the judge wait for you to be late, it is better to wait for the creditor in advance. This is the minimum attitude of responding actively. If you can't be present on time for special reasons, you should explain the reasons in advance.
The judge will ask you whether the loan is true, the repayment situation and other basic information. This is the best time for you to answer the lawsuit. You should truthfully state your actual difficulties and repayment plan, show your determination and attitude to try your best to repay actively, and strive for the mediation of the judge.
Usually, the judge will give you the opportunity to negotiate face to face with creditors. You should take this opportunity to negotiate with creditors and ask for a lower interest rate. If you are sincere and have the sincerity to repay, you will pay more interest than the principal, and the creditors will agree or make reasonable concessions.
If the interest you pay within the time limit really exceeds the standard protected by law, and the creditor does not give in, then the court will convert the overpaid part into the principal you repay. In this way, even if the negotiation fails, it is not a bad thing for you. On the one hand, your principal base will decline, on the other hand, according to the highest standard of current private interest rate, it is only 15.4%, which may be much lower than the interest you actually bear.
If the creditor gives in again, your interest rate will be lower.
First, you can reach a new repayment method, interest rate standard and repayment period, which actually gives you the opportunity to exchange time for space.
Second, the creditor has achieved the effect of protecting legitimate rights and interests according to law, and will not apply for enforcement within the new agreed time limit, at least your credit and property will not be affected within the agreed time limit. Even if you can't repay within the time limit, if you have the actual action and attitude of actively repaying, the creditors will continue to understand you, and you can not apply for enforcement, and you will actually strive for a longer grace period.
Most creditors are reasonable, and their hearts are full of meat. Creditors will treat you as you treat them. On the contrary, if the debtor tries his best to be patient, the creditor will still make trouble without reason. At this time, the debtor may not care so much and can only choose confrontation. Even if he has money, he may not be able to repay it in time. Therefore, both sides should put themselves in the other's shoes, which is more conducive to the settlement of creditor's rights and debts disputes.
It is normal that the interest of private lending and financial lending is higher than the principal. First of all, is loans overdue long? Secondly, is it agreed that the interest rate is too high, and various illegal fees such as service fees, handling fees and information fees are charged in the name of loans? If the agreed interest rate is too high, it depends on the time you borrow it. The current maximum annual interest rate of private lending is 15.4%, and the excess is not protected by law.
It is normal that the loan repayment exceeds the principal. First of all, it depends on how long you borrow it, how high the interest is, and whether it exceeds the national protection interest rate by 24%. If it exceeds the interest protected by the state, it belongs to usury. If it's really usury, if you haven't defaulted on the loan for a long time, you can calculate the amount of repayment in each installment MINUS the residual interest, and then you don't have to pay it back. If the other party sues you, you can also take all the repayment accounts and protect the interest according to law. The law will also protect you.
This is a common phenomenon of folk usury, and it is also the result of the debtor's failure to communicate with the debtor in advance. Before this, it is necessary to communicate the principal plus interest and the debt, so that the debt will be written off and no new agreement will appear.
Usury is a bottomless pit. If it is used in an emergency, it is ok. Once the capital chain breaks for a long time, the consequences will be very serious. Now the society is lending usury to earn interest. The state stipulates that the annualized interest rate of private lending shall not exceed 15.4%. If it exceeds, you don't have to pay it back. If you have the other party's WeChat repayment record, you can submit the bank transfer and WeChat chat record to the court to prove that the other party is a usurer and your repayment interest has exceeded the principal.
Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases The following six private lending contracts are invalid:
1, take loans from financial institutions for lending;
2. Lend funds obtained by borrowing from other legal persons, raising funds from employees of the unit or illegally absorbing public deposits;
3. Lenders who have not obtained the loan qualification according to law provide loans to unspecified social objects for profit;
4. The lender knows or should know in advance that the borrower is still providing loans for illegal and criminal activities;
5. Violation of mandatory provisions of laws and administrative regulations;
6. Violation of public order and good customs;
Now that the other party has sued you, you can collect evidence or consult a lawyer as soon as possible. Good luck!
1. The court will not help you recover what has been returned.
2. If the balance is not settled, interest will be calculated according to the agreed interest rate or LPR4, whichever is lower.
The above is just a brief explanation, depending on your specific agreement.
4. There is no law that the interest cannot exceed the principal, and the total interest of mortgage repayment is generally greater than the principal.
So it depends on your specific agreement.
Of course, according to the recent judicial interpretation, the other party is a professional lender. Once it is defined as illegal business, the agreement you signed is invalid. But you need to obtain evidence for this, not to say that the specific standards stipulated in each place are different.
Did you sign the contract without consultation when you borrowed money? A contract is also called an agreement, and the terms in the contract are agreed by both parties through consultation. Now that the agreement has been signed, it must be carried out in accordance with it. It is an eternal truth to borrow money for money. Interest will not be written into the agreement until both parties agree through consultation. For example, if you get interest from a bank loan, you don't have to change the principal? People like you are people who have no integrity, and they are the old lai that everyone hates.
How many years did it take for the interest to exceed the principal? If15 is not paid off in 20 years, the creditors will certainly sue you. If only 1~2 years' interest exceeds the principal, then he will not support the lawsuit.
This happened to one of my relatives at the end of last year. The principal has already been paid, and I have paid more. Last year, I was sued by the other side. What interest did the other party say? People nowadays are insatiable!
Did you force you to borrow money when you borrowed it? You said good interest, repayment date and time? Is it also a contract agreement signed by both parties themselves? Don't always think about defaulting on borrowing money! ! Lao lai's face is obviously exposed! !