A personal loan can help us rid a problem for which we do not have the money at the moment, however, we must bear in mind the responsibility that implies, so in the coming months we must organize our expenses well to meet the payment of our fees.
But what happens if the expiration date comes when we are faced with a situation that prevents us from paying the debt? Stop paying the debt, instead of being a solution it can become a serious problem.
If you believe that you will not be able to meet the payment of your next installment, it is best that you contact the financial entity that granted you the personal loan, to look for some option of refinancing or debt fractionation.
Otherwise, you will have to face a series of consequences. Here are the most important ones:
If you do not pay your personal loan, the debt will increase
If you are late in paying your fees, you will not only have to cover the initial debt, but you will also have to pay extra charges for late payments and penalties. These will be accumulated as time passes and the debt will grow.
By not paying your loan, you will affect your credit history
When you do not pay your debts, financial institutions will pass the report to the risk centers and this will affect your credit history, so that instead of being identified as a good customer, your score will go down.
Keep in mind that your credit history shows information about past and current debts you have.
You may be interested: How to build a positive credit history?
If you don’t pay, you lose access to loans in the future
If you are reported in the risk centers in a negative way, no financial entity can grant you a loan in the future. Remember that financial institutions consult your credit history to determine the risk of giving you another loan or credit card.
Although this may not seem like a problem today, if in the future you would have a major emergency where you need financing, you will not be able to access a new loan.
Even if you are already late in some installment, do not forget to pay your loan. Financial institutions have options to help you, approach them to reach an agreement and thus be able to fulfill your payment.