If someone has applied for loans and had their application approved and then funded they may then not be able to repay the debt at some stage. I can never even begin to stress enough at just how important affordability is on finance. When short term loans or other borrowing options are obtained they must then be repaid back on every occasion and they should be repaid as originally agreed with the lender before that person was accepted and funded. It does not matter whether someone is approved for payday loans or other short term loans, instalment loans or even credit cards the debts must be repaid. Below is three common actions that can occur if repayments are missed on most finances.
If someone misses repayments on debts then more or less straight away they will start to be chased for that money owed. This can be tough for people as having financial lenders such as direct payday lenders chasing you for money owed is normally a stressful time for people and can also be upsetting and embarrassing to. The lender when chasing for instance short term loans can often do so on all contact numbers available. This can be home, mobile as well as employer contact. With the last contact option as well as the first one it can often lead to other people finding out about the debt and no borrower will want that. Customers in debt can also receive frequent emails and also receive letters being sent to their home address. That last option as well can lead to other people finding out about overdue finances.
When repayments are missed on debts that person may not realise just how quick their balance can increase. It can be common especially with short term loans including payday loans, that when a repayment is missed people will often receive a late fee more or less within twenty four hours of missing payment but also they can likely receive daily interest on their overdue balance. This can become a problem for someone who somewhere down the line can look to pay off their balance in the future. They can contact a Creditor for example and then all of a sudden their balance has risen to an amount that is no longer affordable for them to repay. This will lead to the balance then starting to increase again.
Having financial accounts overdue will often result in that persons credit rating being negatively affected. That in turn can then result in that person struggling to get finance in the future. Even when they are occasionally approved it can lead to their borrowing being very expensive. If people leave debts overdue for prolonged periods of time then the finance company who are owed will most likely leave a default on that persons file. That will definitely bring their overall credit file score down. Some lenders actually aim to offer finance such as short term loans to people in these situations but for most borrowers like this, obtaining finance will be much harder than it would be if they have good credit and as a result they have a high credit score.