What if I do not return the loan within the agreed period?

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There are many opportunities for purchase or investment that are presented to us, and sometimes we need extra help to access them. For this reason, banks offer different types of loans , which help us meet our needs. However, situations can occur that make us fall into unpaid loans, when to stop paying seems the only alternative to solve a critical financial situation. However, this decision that can generate complicated consequences.

Assuming a loan

When a loan is contracted, the duties to be assumed must be clear. A loan is an agreement between a lender and the consumer, so by signing you are accepting that you will assume all the established obligations, such as paying taxes, using the money for the indicated purpose, and so on. It is therefore essential that, before taking a loan, you carefully read the contract and make sure you understand its clauses.

Unpaid personal loan consequences

From the first month of delay, the bank already begins to charge interest. Currently, interest on late payment for personal loan default is 2% , although it will always depend on the clauses signed with each of the entities, above those already established. If it is an unpaid mortgage loan, the amount amounts to 3% of your normal taxes. The same can happen in case of unpaid car loan. Another consequence that you expose yourself for not paying your credits , is that you seize the goods that you have fixed as a guarantee, since the bank will initiate legal proceedings that will retain your income until the debt is paid off. If this exceeds the value of your income, it will proceed to seize your belongings, auction your flat or keep your car. It is important that you know that in case of default mortgage loan , if after the sale of the floor has not yet been able to settle the amount owed, the bank may end up seizing the rest of your things.

In addition to this, you would be registered in the Ferb , Phineas or any other list of defaulters, and as a consequence you could not request another credit in the future.

Adequate financial planning

Before applying for a loan it is very important that we analyze our possibilities and economic needs. Many times we get carried away by the immediacy and we rush to request money, when planning and economizing in our day to day , we could achieve the necessary amount in the short term. Therefore, we must review in the first instance why we need extra income.

If the answer pleases us and we see that the loan is important because we have an emergency or we need to make repairs in the home , then we must make sure of how we are going to return that money, in order not to fall into unpaid personal loan consequences. The best way is to review our income and be honest about the amount we will have available each month to assume the new expense. It is important to consider that we will always end up paying more money than we receive, since we must consider the commissions and taxes that a loan generates.

If you have already requested a loan, review your expenses and try to prioritize the payments of your fees. If you discover that you will not be able to meet the costs, go to the bank and talk to them. It is better to face the problem as soon as possible to avoid taking actions for unpaid loan.

Communication of the entities and renegotiation of the pending debt

It is very common in microcredits or online loans that the borrowing companies contact us by telephone once we have not addressed our return commitments. In this case we will be required to cancel all or part of the debt. It is possible to adapt a payment plan depending on personal circumstances and many of the entities have some flexibility to adapt these settlements and are quite receptive to renegotiate some of the penalties carried out for the breach in the deadlines. It is always better to collect part of the debt adapting conditions than to risk not receiving anything from the client if it is impossible to cancel the debt.