What happens if I do not pay payday loans?

When we need money, it is very common for us to resort to a loan 

It can be a bank loan or a quick online loan, which has become increasingly popular due to its many advantages.

At the moment we sign a loan contract, we are committing ourselves to return the money that has been lent us in a certain way and within certain deadlines.

 

 

 

 

 

Avoid consequences for non-payment of a loan

It may be monthly or quarterly, or we are talking about a single full payment of the full loan and interest.

Anyway, whenever we request a loan, we promise to return that money, and if we do not, this ” lack of the word ” has its consequences, we should not believe that if we do not pay, nothing will happen.

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What are the consequences of not paying a loan?

Depending on the policy that the lender in question has in relation to the non-payment of the loan, the consequences can be diverse.

However, as a general rule, the first thing that the financial institution will do to which we do not return the money it has lent us, will be to apply economic sanctions, which will be added to the debt that we already have.

Economic sanction

The economic sanctions that the financial institution will apply will vary depending on the amount that we have requested and the time that we delay in paying.

They can be of the following types:

  • The interest of delay: This interest cannot exceed by more than two points the interest rate agreed with the lender, and begins to apply from the first day of default.
  • Commission for claiming debit positions: the entity will charge us a fixed amount ( usually between 25 and 35 euros ) for each time you have to contact us to request a refund of the loan. That is to say: if he calls you by telephone to ask you to return the money three times, he will apply 3x the amount that he has stipulated.
  • Commission by overdraft: in case that to pay the loan we have to remain in the red in the account, although this will not be charged by the lender, the bank will do where we have our account.

Files of defaulters

The most common thing that comes after the lender tries to return the money ” for good “, is that if we continue without facing the debt, we include in some file of debtors such as ASNEF.

In addition, if we enter a file of defaulters for a debt of a loan, no lender, although offering services to people with ASNEF, will accept an application.

Legal measures and embargo

If we continue without paying the loan, the financial institution to which we have requested the money can take legal action against us and make us return ” by force ” the money we owe, by seizing our bank account or our assets.

As you can see, not returning a bank loan can have dire consequences.

Do you want to know how you can avoid them in case you can not pay the loan on the stipulated date? Do not go.

CONSECUENCIAS POR IMPAGO | Las consecuencias de no pagar un crédito

How can I avoid these consequences?

 i have to many payday loans. There are several options for example payday loan consolidation that you can resort to if you find yourself in an unexpected situation in which you will not be able to return loans within the stipulated period.

It is important to be clear that for any of the points we are going to see to be effective and accepted, you must be transparent with the entity and communicate with them in advance.

  1. Extension. In many entities, we have the possibility of extending the term of the refund in order to have an ” extra ” time to collect the money. It is urgent to bear in mind that this extension will entail an increase in the cost of the loan since it will be linked to some interests.
  2. Period of lack. In many cases, we can request a grace period and not pay the debt for a few months, or just spend those months paying the interest generated by our loan, without returning money properly.
  3. Negotiate a new term. We can sit down with the lender and negotiate a new repayment term to change the loan terms and conditions that best suit our needs at this time.

Remember that to avoid the consequences and that any of these three points can be made reality, you must notify the financial institution in advance.

The Particular Secrets In With Payday Loan Loan Companies

Have you ever received a phone call from the so-called law firm threatening in order to sue you for check out fraud?

Have they known as you at work and alerted you that if you did not pay out them, they will show up at the job and serve you along with court papers or even worse, arrest you? Are your friends and relations being harassed and endangered about being sued with regard to the conspiracy to your crime?

By obtaining these financial loans, you can overcome cash difficulties such as debt consolidation, medical expenses, home renovation, credit card fees, purchasing a used car, tours as well as other financial expenses. These financial loans are also coming with sensible APR. So, you can easily conquer any financial crisis with ease.

A financial debt management plan solves these types of troubles, helps you relax plus chill. They plan plus manage your debts for you plus help you repay them on time plus settle all accounts for good. A free debt management since the name suggests does not get any money from you for the suggestions and help extended in your direction. The first step taken by this assistance is to study your income, your finances, how much can you pay every month excluding your regular expenditures and what kind of credit you might have. Then they start with the debt which is of highest priority or perhaps a debt which is of the small amount with a higher interest rate.

If you wish to step out of debt altogether and relieve your financial burden, you should look at consolidating your bills.

College student payday loan consolidation allows you to pay off your financial troubles faster. For those that are just away from college, your plans take finding a great paying work and then securing your own spot to live. Perhaps you are thinking of the family. The benefit of consolidating for you is that you can pay off these types of debts faster and that indicates freeing up money with regard to what you need it for like a down payment on a new vehicle or even that house.

Whenever you set up your consolidation payday loan consolidation (and therefore fix the interest price that applies to your debts), make sure that the interest rate that you will be offered is lower than the price that you were paying. This may sound obvious but a possibility unknown for people to end upward paying a higher rate of interest on the student debts. Remember, when the interest on your loans is usually fixed at a lower price it will take less time and less cash to repay your debts.

I eventually quit our low paying job plus found steady employment plus used a percentage of the salary to slowly pay out my debts in little increments focusing on one at a time, paying out it off, then moving the money over to another expense and so on. After about 6 months my credit has become respectable and I can get financial loans whenever I need them.

At the end of the day whether you decide to take out a loan consolidation will be entirely up to you. You have to weigh up the different options determine whether its suitable for a person. If you’ve got lots of different accounts along with varying interest rates a payday loan consolidation may make life just a little easier for you. Discipline is vital.