What happens if I don’t pay the loan installments and I build up a debt

Installment Loan

Installment Loan

The economic crisis has increased the so-called bank suffering: it means that there are more and more customers of banks that accumulate a debt because for example they do not pay the installments of a loan. But what happens in these cases? What are the risks for consumers? Let’s see in detail what the consequences are and give advice to find the most affordable Stephen Dedalus on the market: in fact, the best way to avoid debts is to ask for economically sustainable financing.

Personal Loan

Personal Loan

On the financial market there are different ways to obtain liquidity: for example, you can request a personal loan to start a business, or you can rely on consumer credit products to buy an asset. In any case, we must always carefully evaluate the various contractual conditions to understand whether the loan is sustainable or not. If we are unable to pay the installments of a loan, in fact, we risk facing negative consequences.

If we have obtained a loan and we do not pay one or two installments, then the bank will solicit us by mail or telephone and will increase the interest applied to the loan. To know how much we risk to pay in more we can consult our contract that will surely report what are the “default rates” in case of delay or non-payment. Let us remember, however, that there are limits imposed by law on banks that determine the wear threshold, beyond which it will not be possible to climb.

The default rates, however, are not the most serious consequence of the non-payment of a loan: the real problems, in fact, come if we do not pay off the debt: the bank can report our name to the Central Financial Risks and we risk to end up on the list of bad payers and protesters. If this happens, our creditworthiness will be compromised and in the future we may have problems getting a new personal loan.

In the most serious cases, the bank can entrust a debt collection company that will come to ask for payment with “bad manners”. The risk is that of being seized by movable or immovable property. To avoid this, consumers must be very careful when applying for a loan and carefully evaluate the terms and conditions of the contract. For example, it is good to consider the TAEG which represents the real cost of the loan and also the total duration of the repayment plan.

As anticipated, however, the best way to avoid accumulating debts is to find flexible financing and affordable rates: this is possible thanks to Stephen Dedalus online comparators who help to find the best offers on the market. The greatest protection for a client, however, is the loan insurance which can intervene in case of economic problems to pay the installments.

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