If someone is accepted on finance particularly from the financial place, if they take the loans out they must then be repaid. Any person must repay the debt as agreed with the financial lender and they should always do this on every occasion. Failing to make the required repayments on finance will nearly always result in severe negative consequences for that person and most people will then always want to avoid this from ever happening. It will not matter whether someone has borrowed a short term loan, an instalment loan over a potentially longer period of time or credit cards to name a couple, the debts must be repaid. Below is just two common occurrences that will happen if the repayments are not made on the finance when obtained.
If repayments are missed on let’s say short term loans for example then that company who are owed the money can contact the person to get the money. They will have every right to make contact on all the valid contact numbers they have available for that borrower. This can of course include home, mobile numbers and also calls to the debtor’s work place. They will just need to get hold of the person to see why the repayment was missed and also when they are able to make the overdue instalment. Letters and text messages can also be sent to the person to chase the money. It can be common that when a person is being chased for money especially when letters are sent or calls are made to a work place, it could lead to other people finding out about the debt and no one would want this. Being chased for money that is owed in general is often a stressful time for anyone to go through. If someone has a short term loan or other borrowing type and they miss their required repayment, they will often see their credit score then get negatively affected. This can be a problem for a high number of different people should they then as likely to need to borrow again in the future. If repayments become overdue on short term loans and if they are not repaid for a while the lender who is owed the money can mark it on a person’s credit file that they are behind on the required repayments. If the account is then heavily overdue for a prolonged period of time then the file can be marked with a default and this is the worst case on the file. This can make it harder to approve finance for the future as a lender will view these files before making a decision as to whether or not they can lend to someone. Having this occur can have further importance for people should they at some stage need to borrow money to make a really significant purchase in later life. This could be a real problem for someone looking to borrow a mortgage at some stage or perhaps a new car as required. Lenders who offer such a product can often decline applications if people have bad credit and have struggled maintaining other debts in the past.
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