Many people experience financial failure, and this is the result of various ill-considered actions in managing their own budget. We still spend more than we earn, but another loan can negatively affect our financial standing.
The fact that today the so-called payday loans or quick, free commitments are simple and does not require an analysis of our income, we are getting more and more indebted. We have greater needs and expectations regarding the comfort of everyday life, but unfortunately we do not always have the financial means to be able to meet them.
Difficulties with repayment of loans may also result from the appearance of unexpected expenses, through the loss of a job or random accidents, which are beyond our control and which require financial commitment from us. It also happens that we lose control over our own budget, we fall into the so-called a debt spiral, and income is becoming insufficient to settle its liabilities on time.
The basic consequence of a loan being unpaid is timely loss of stability. Debts are starting to increase, and soon to reach huge sums. Finally, a bailiff will knock on our door and he will implement the bailiff’s execution.
Many people wonder ” what if I don’t pay back the loan “. All debtors can be sure that overdue payments will not be forgiven, although some banking and non-banking institutions are willing to settle and establish a flexible form of repayment.
It should be remembered that the effect of non-payment of loans is high interest, which plunges even more financially. Moreover, the debtor will be entered in the register of debtors, and this shameful story will not positively affect creditworthiness. In the future, no bank or loan company that verifies BIK or KRD databases will want to provide financial assistance to such a person.
Even a loan that is granted on attractive terms ceases to be beneficial in the face of delays in repayment of monthly installments or complete cessation of repayment. Banks and non-bank institutions impose high fines on unreliable customers.
Lack of loan repayment very quickly generates further costs, which are associated with, for example, charging large interest or sending paid reminders. This is another financial burden for the borrower who has to face it.
Each outstanding loan is entered in the register of debtors. This means total disqualification regarding the possibility of incurring further obligations. The register of debtors is called blacklist, which includes those who are not worth cooperating with.
A loan that is not paid on time leaves a mark. All the borrower’s activities, both positive and unfortunately also negative, are recorded in the credit history. You can learn about this by generating, for example, a report from BIK (Credit Information Bureau).
Banks and loan companies check the financial standing of potential clients, and one of the factors is their credibility. This is shaken if in the past liabilities were not paid on time.
And that’s not all. Persons who have not repaid the loan are entered in the National Register of Debtors. Such an entry completely disqualifies the borrower from incurring further liabilities. In this situation, the only option for debt relief is to take out quick loans without checking the bases.
One option to save your financial situation is to go to the branch of the institution where the commitment was made to negotiate favorable repayment terms. Many companies and even banks compromise to recover their debts.
If this does not improve the financial condition and the debtor still has problems repaying the loan, the next solution is to incur another commitment to debt relief. However, it should be remembered that the next loans can be taken only if the debtor is certain of the possibility of repayment.
Otherwise there is a high risk of falling into the so-called a spiral of debt when the value of outstanding commitments exceeds the monthly budget.