Controlling the monthly budget and handling all obligations can be a tremendous challenge for people. Dismissal, divorce, illness… there are many reasons that make someone fail to pay the loan, but few really know the real losses for those who are late. Even if the delay is only a few days, there are already consequences for your finances. And the more days you spend ignoring the payment, the situation will only worsen. Thinking about it, we separated 7 reasons for you to turn the yellow light on the bills and never fail to pay the loan installments.
Dirty name in the square
Every time the consumer fails to fulfill any financial commitment, including loans, he runs the risk of being placed by the lender (the company that lent money) in the default register of Cream Bank, Credisure Group or Best Bank. In other words, the consumer can keep what is called a “dirty name”. Even if delaying, even for a few days, is not good, the Consumer Protection Code guarantees that you will have ten days after the expiration date to settle your pending issues before being included in any registration.
In the meantime, you must be informed of the situation by the loan company. After paying the amount, your name is removed from the register within five days. The situation may not look like the scene of Cersei walking naked in the Game of Thrones walk of shame (oops, spoiler!), But the feeling of the person who has the name included in the debtor banks is as if everyone knows about their own . secrets. And it can have consequences …
Bad history, lowest score
If you do not pay the personal loan, that information will be recorded, in pen, not pencil. Years may pass, but your name will be noted there. If you need something up front, the company will consult this “score”, a report that shows not only a score, but also your debt payment behavior. Overdue loans lower this score value which reduces the chances of getting new products. The world of turns, no?
Another of the big losses of those with a dirty name is the credit restriction, which can be a tremendous headache for people who plan, for example, to finance a property or car. Before granting you money, the company, even if it is not the same for whom you did not repay the loan, will consult the default records. Even to install credit card purchases, the delay of the loan can be a problem.
Interest on late payments
Every time you do not pay a installment you will have to bear the so-called default interest, a percentage fee charged according to the delay time. This means that the initial planning you had done to pay a certain amount will no longer be accomplished. It will become more and more expensive not to settle this account, which leads us to the fourth reason why we should not delay loans.
As long as you do not pay the loan, interest will accrue. And as the rate accumulates, the value of the debt increases, which can make the account priceless. The result: charging interest can dramatically increase your debt. So it is best to keep financial commitments up to date so as not to end up with even greater debt.
The next step after having a dirty name is to be charged judicially. a company’s right to collect the debt in court. This can mean years of legal strife and, in the end, the amount will have to be paid.
Having a dirty name is not an impediment to taking public office, but public financial institutions can make this restriction, already placing it in the notice. There is usually a deadline for the person to rectify the situation. But why leave to pay tomorrow what you can pay today, right? Of course, if you have doubts on how to organize finances, count on us! We have the application that helps you and the service channel for you to answer your questions.