What are the consequences of defaulting on a loan?
I can’t afford refinancing the loan either, so I pay them $ 300 each month, for now it goes 3 months after the deadline. Today I sent them a registered letter to both loan companies describing the situation once again and asking them to spread it in installments of $ 300, declaring that I would pay monthly with confirmation of the transfer from my account.
What do you think about this? Is there any point in paying some amount? and what’s next – what are the next consequences? what threatens me what deeds on their part? after what time do they have the right to take me to court, or can a bailiff come to me without a court order? I am asking for some advice.
Of course, that making even $ 300 to pay off a loan makes sense, such action on your part means that you have no bad intentions and you are willing to pay off your debt to a loan company.
What are the consequences of not paying back the loan?
Non-bank loans are, of course, a great help, if we need money, then we rarely remember about how expensive this loan will be, what the APRC has and what they write with a small print.
In fact, it is the speed with which the loan is to be arranged, no complications and immediate money, it is a lure designed to divert your attention from even more important matters – the conditions of the loan. But what if it’s too late?
What is the risk of loan defaults?
- If the installment has not timed the loan company account, the company will contact you within a few days.
- Then you will start to receive text messages reminding you that the loan should be paid back on time. Such an SMS is called prompt, SMS prompt may cost you up to $ 40!
- The loan company will then propose to extend the loan for a maximum of 30 days – I do not need to explain how expensive this operation will be?
- If there are still delays in paying the installments, the consequences of not paying the loan will result in a visit by the debt collection company. There will be further debt collection costs.
- The collection agency will try to contact you in various ways. They may even threaten that you will be entered on the list of debtors. I know that non-bank companies are eager to put unreliable borrowers on the BIG blacklist. like KRD or BIG InfoMonitor.
- Then the case goes to court if you still don’t pay the installments correctly. A court enforcement order will be issued and an enforcement clause will be issued.
- Now the case goes to the bailiff. Be sure to read about what a bailiff can and what entitlements.
- The bailiff will try to recover money from the creditor (loan company). The bailiff will have the authority to take you movable property to cover the debt in the loan company. Bailiffs mostly go to bank accounts, pensions, salaries, pensions, benefits etc. etc.
I think that the biggest chance for any debt negotiations will be waiting for the debt collection company to contact you. If the loan company does not want to spread the loan into installments, maybe the debt collector will do it?
Pay off your debts as much as you can, while waiting for the debt collection company to contact you. Unfortunately, the bad news is that if your debt goes to debt collection, they will be charged extra.
Unfortunately you have to deal with it, I don’t see any other option right now. I hope I helped you understand the consequences of not paying back the loan on time.