I can never stress at just how important it is for people to repay their debts once they borrowed it. Missing loan repayments for any person will nearly always result in severe negative consequences for anyone involved and this is something most people will always be keen to avoid. It certainly does not matter whether short term loans or borrowed from direct payday lenders or whether instalment loans are taken out from high street lenders, the debts must be repaid as agreed. Credit cards, mail orders the ways to borrow money can seem endless but they must all be repaid. There can be things that can occur when repayments are not made and these are explained in more detail below.
When repayments are missed to direct payday lenders that person who is behind will be chased for this debt. The lender will have the right to frequently attempt to contact that person to pursue the money that is owed. They will have then the access to contact that person on all the numbers they have available for that person. This will most likely be the home number, the mobile as well as the work number. For most people being contacted for a debt when someone is clearly struggling financially can be tough and at times it can also be embarrassing. If someone is contacted on the home and work numbers also it could lead to a third party finding out about the debt which can result in further embarrassment.
If a repayment is missed to any lender then that person could have their credit file negatively affected. This can lead to that person in the future finding it harder to get finance approved. Or even when they are accepted it can often be very expensive and it can cost more than it would do for the average or decent borrower. Direct payday lenders have the right when repayments are missed to report the fact to various credit reference agencies so other lenders can see what has happened. They will do this when a debt has been overdue for a certain period of time of normally over a month. This will then in turn make it harder for that person to get finance and their credit score will then be lowered.
When any account is overdue the balance will increase and their can often be interest and charges added by the lender accordingly. This can lead to the balance increasing at a rapid rate which again can be stressful to any borrower. That borrower at some stage may then be in a position to repay this debt but because it has increased so much they can only do so at a more expensive rate. In some cases they may not now be able to repay the loan because it is too expensive. Some direct payday lenders can only offer expensive borrowing products and these charge high interest on any amount borrowed. When they are overdue they can then be really tough to repay.