7 Reasons You Don’t Delay Loan
Controlling the monthly budget and accounting for all obligations can be a tremendous challenge for people. Dismissal, divorce, illness are just a few examples of what can happen in someone’s life to make them disorganized and delay the loan. See http://creditrepairwhiz.com for a write-up
But few really know the real damage to those who delay payment. Even if the delay is a few days, there are already short- and long-term financial consequences. What’s more, as time goes on, the situation tends to get worse.
We have separated 7 reasons for keeping an eye on your bills and never failing to repay the loan installments.
1. Dirty name on the square
Each time the consumer fails to meet a financial commitment, including loans, he runs the risk of being placed by the lender (the company that has lent money) in the default register of SPC Brazil, Serasa Experian or Boa Vista SCPC. In other words, the consumer may get what is called a “dirty name”.
By law, the Consumer Protection Code ensures that a person will have ten days after the due date to settle any outstanding issues before being included in any registration. about the situation by the lending company. If you pay the amount, the name is removed from the register within five days.
2. Bad history, lowest score
If you do not repay the personal loan, this information will be recorded. Even after years, such information will be noted. If after a while the consumer needs some product, the company will consult “score”, a report that shows not only a score but also a payment behavior of People’s doubts. Late loans lower this score value which decreases the chances of getting new products.
3. Restricted Credit
Another of the great losses of those who have the dirty name is the credit restriction. Even if the loan is not a loan but a mortgage, for example, the delay will be a barrier to accessing new products. Up to parcel purchases on the credit card “That said, loan arrears can be a problem.”
4. Interest on late payment
Every time you do not pay a installment, you have to bear the so-called arrears interest, a percentage rate charged according to the time delay. This means that the planning initially made to pay a certain amount will not be fulfilled. The doubt will be more expensive.
5. Snowball effect
While the installments are not paid, interest accrues. And as the rate builds up, the amount of debt increases, which can make the account priceless. In other words, the interest charge can be very high. Therefore, it is best to keep your financial commitments up to date so as not to end up with even greater debt.
6. Judicial collection
The next step after having the name dirty is to be charged in court. It is a right of the lending company to charge due debt. This can mean years of legal fight and headache for the debtor.
7. Public Tenders
Having a dirty name is not an impediment to taking public office, but public financial institutions can make this restriction by placing it in the notice. There is usually a deadline for the person to rectify the situation, but one does not have to let the situation get to that point to solve the problem.
Of course, if you have questions 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.