As the private loan is being so successful, in addition there are so many people who resort to it since the banks do not grant credits; Many people wonder about the risks if you don’t pay the particular loan.
Consequences of not paying the loan
This is a question that must be made very clear, depending on the documents that were presented when the loan was signed, in addition to the country in which these operations are carried out and also whether the person or borrower who has received the quantity, depending on all those particularities, there may be consequences that may be more or less difficult.
This happens for an essential matter, first of all we advise you to do everything in your power to ensure that the payment is formalized correctly and in due time. Another alternative could be to contact the lenders and explain to them why it was not possible to pay on the scheduled date and study the possibility of changes to the initial conditions or a readaptation or modification of the contract, which would allow.
Payments can be made more spaced out over time or with smaller fees. It could also be that the lender agrees with this that we will raise, although we should not venture or lean too much on these conjectures since it could be that this solution was not as we have not planned and the private loan company may not totally agree.
What will happen in the event of a default on this particular loan?
First of all, it must be borne in mind that when these private loans are no longer paid, it is very likely that the situation will be communicated in a very short time to various consumer agencies, it may also be that we become part of the lists of defaulters, which will seriously harm our image and will not allow us to present ourselves as creditworthy people when applying for other future loans.
When these types of defaults occur, and the agreed dates are not respected, it may happen that the penalties come and that the debts begin to increase, this is very important and should be avoided since the debts can increase considerably. Keep in mind that every time we do not pay on time we will have to pay surcharges for returned receipts, etc. therefore we must avoid this situation, since we do not want this to be complicated.
Let’s see what happens when we do not pay the particular loan if we really want to refuse to pay that particular loan and when the corresponding day has come when the installment has to be paid we do not do it or for external reasons it is impossible for us to pay, the company in principle it may take time to act. But the first steps will come as follows, initially, the interest on the private loan will be increased and this is very serious since the debt is going to be higher.
Company will make a legal actions
Subsequently, the private equity company, in the event that we continue with these defaults, will go to court and add that the conditions that signed the contract have not been met. When the company granted the loan to the borrower, a series of documents were signed in which the applicant promised to return the money along with the interest. This role has a legally binding validity. If the private credit company goes to trial against the borrower, the borrower will be solely responsible for the payments derived from the legal expenses, which will also contribute to further increase the debt.
Our advice is that under no circumstances should this endpoint be reached, and that we try to avoid this situation as problems will continue to worsen as time passes. Ultimately, the judge may take a number of extra steps to get these debts burned onto the debtor’s property, and properties may be seized in order to pay off this loan. Being able to get to seize part of the payroll or issue orders that force to sell properties to be able to face the debts contracted.