If you have ever applied for a loan or loan, you will know that the idea of extending your income thanks to a card is completely wrong and that, rather, a loan means assuming a commitment that, if not fulfilled, has repercussions of different types.
Otherwise, if you have never applied for a loan, you are just in time to learn how to use it in your favor. Since living without enslaving you and maintaining a healthy relationship with financial institutions is not an unattainable dream, it is a perfectly achievable goal and the right way to use this service.
One of the great benefits of borrowing money, either from the bank or any institution or person, is that of being able to carry out your projects in a shorter term than the saving process would take you to carry it out. Investing in some way the order to save → buy for the loan request → pay it . It’s something like buying time.
Do you know where the money you borrow comes from? Indeed, it comes from financial institutions. But this money comes from its investors, who rely on these organizations to have a stronger heritage. How? Granting loans. In this way, the interest you pay (when you pay interest), represents the returns for investors who are looking to grow their resources over time.
Not complying with your financial obligations may have some consequences on your economy and yours. I present them below:
When you evade your debts, the first thing that happens is that they increase from the first day you fall behind in your payments. As more time passes, interest will grow, since the total amount you requested is at greater risk and this risk has to be offset by a higher interest rate for the investor.
Remember that the longer you spend, the harder it will be to settle the amount you requested.
Collection management is one of the most difficult tasks for financial institutions and users. Emails, telephone calls among other methods are involved in the objective of recovering the money that was granted to an accredited person, hurting a little the relationship between the institution and its clients. This is understandable, since each of the parties is obliged to ensure their interests.
You can easily avoid this experience by respecting the cutoff dates and payment deadlines. In case you cannot pay off your debt, I recommend calling these institutions yourself and trying to reach an agreement. There is always something that can be solved.
Without a doubt, one of the most serious consequences of not paying on time is that you probably cannot reapply for a loan from another institution. This is because your payment habits are registered with the Credit Bureau to help other institutions know how convenient it is to lend money to this or that person. Influencing the amounts you can request and the interest rates that will be applied in case you are a candidate for a new loan.
If you want my recommendation, before requesting a loan, check your credit bureau score so as not to acquire debts that you cannot pay off.