What Will Happen if I Don’t Pay My Personal Loan?

Most people who take personal loans are willing to pay back in time for failing to do so have its consequences those can hardly be considered as pleasant. Failing to payback a personal loan in time means piling up of late fees, debt collectors hounding the defaulter and one may even be drawn to the court of law to appear before a judge and have his wages garnished by the court of justice. One must try to avoid the situations as much as he can for when someone signs up for a loan, he only wants the money o solve his problems but not the problems those may come associated with it.

Sometimes people do default in repaying their Instant cash loans for there can be unexpected difficulties like sudden job loss, serious medical conditions etc. Those can capsize one’s monthly budget. These situations often push people to situation when they are not only behind the payment schedule but as a matter of fact are unable to repay the loan at all. Following are some of the consequences that one may encounter following a loan payment default.

• Late fees building up: If one fails to make timely repayment of his payday loan or quick cash loan the first thing that happen is a late fee. This extra money will be added to your loan amount and your burden will keep increasing every time you miss out a payment and late fees are added. The size of the late fee varies from one lender to another and is mentioned in the loan agreement that you must check out before agreeing to sign.

• Credit score is affected: If you have taken a fast Loan that means that your credit score is already pretty low and all other traditional routes of borrowing money are available no more. Defaulting a quick cash loan will make your credit score suffer further and as a matter of fact a single late fee can affect your score heavily and if there are a few more, they can really wreak havoc.
• Defaulting your loan: Once you have failed to repay in time the lenders will be sending you mails and use other modes of communication to make you pay back the loan amount and normally after non-payment for a period of 180 days you will be considered as a defaulter and the lender will be switching over to its collection mode. The period after which a borrower is declared defaulter also varies from one money lender to another.
• Introduction of the debt collectors: Once a borrower is a declared defaulter loan agencies normally handover the collection responsibility to a third-party debt recovery firm and when this happens can turn somewhat bitter. You may have debt collection agents calling on you any time of the day or night and they often end up harassing or threatening people to force the money out of them.
• Taken to court: You cannot be sentenced to jail for defaulting personal loan but the lending agency can actually drag you to the court and the judge may allow the creditors to get directly paid from your wages living you in further difficulty.