The first thing to be clear is that to stop paying a loan is not the solution to an economic problem. In fact, any adviser recommends that the timely payment of a loan must be a priority before the other monthly expenses since to stop paying, far from being a solution, is the principle of greater debts and lack of control of our finances- Padyay Loan Help Company can help you. Let’s know what usually happens to people who stop paying their debts:
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When you stop paying the fee for the first time, the bank will begin to apply interest for late payment, interests much higher than the ordinary ones that range between € 20 and € 35. These interests and commissions are accumulated to the original debt so that each month the ball will be larger. The entity, for its part, will continue to claim payment for a period of time.
The judicial claim of the loan repayment
From the third default, the entity can initiate a legal claim, although it is normal to allow up to six months to pass. At the end of this term, what happens depends on the type of credit contracted and the assets that one possesses.
The seizure of goods for not paying our loans
The person who hires a personal loan puts as collateral the totality of his present and future assets. In case of prolonged non-payment, a judge can perfectly seize these assets, including your house, your car, your bank accounts, part of your payroll or pension, etc.
In addition, if there are loan guarantors, they will also pay the consequences of the outstanding debts, and not only if the defaulter has no assets. In case of default, the entity can choose whether to keep the assets of the loan holder or those of the guarantor.
Inclusion in delinquent lists
And of course, by not paying the person goes directly to RAI, ASNEF or any other list of defaulters. We remind you that these lists can be consulted by all credit institutions, which will make it difficult or impossible to obtain financing in the future.
It is worth mentioning the fact that credit entities and private lenders proceed to point the delinquent on these lists long before the banks, more prone to negotiate a payment solution.
Several tips to avoid credit defaults
As soon as we see that we can not continue paying the credit and before the payment is due, we must communicate the problem to the entity . In general, credit institutions prefer to charge, even if it is a smaller or delayed amount than having to initiate legal claims.
How to find a solution benefits the two parties, they can offer us several ways out: refinance the debt, extend the term, a grace period … Even though all these solutions make the total debt more expensive, they can help us to cope better month to month and avoid dire consequences.