Credit is generally considered a useful invention of humanity. Borrowed money often allows you to buy a desired car or an expensive apartment today, without waiting for the financial situation to improve. But the borrower does not always think about what will happen if at some point there is no money available to repay the loan. What is the threat to the debtor of non-payment of the loan?
Lack of stability in the economy often makes the financial situation of a person who has taken out a loan unpredictable. It is very easy today to be left without a job or other source of income. However, it is impossible to refuse to fulfill obligations under the loan agreement. Therefore, before taking a loan, you should carefully read the terms of its return and responsibility for violating the terms of debt repayment. In most cases, the agreement provides for penalties for violation of the terms of loan repayment or for the complete inability of the borrower to repay the debt. These sanctions can be different. Sometimes this is a fixed amount of the fine for each day overdue. And in some cases, the creditor reserves the right to demand from the debtor early repayment of the entire loan amount in the event of a delay in payments. If, within the agreed period, the borrower is in no hurry to repay the loan and or to extinguish the accumulated debt, the bank begins to act toughly. If the contract provided for a pledge, then the credit institution has a reason to go to court with the requirement to sell the pledged object, and use the funds received to pay off the debt. The courts, as a rule, in such cases usually take the side of the creditor and satisfy his legal claims. In the absence of collateral, any valuable property belonging to the debtor may be subject to implementation: household appliances, a car and even an apartment, unless it is the only housing for the borrower. A lending institution can also resort to the services of a collection agency to resolve the issue of loan repayment. In fact, in this case, the agency buys the unpaid debt, after which it starts working with the borrower. The work begins with a warning about the need to pay off the debt. These can be periodic phone calls or sms-messages with insistent demands to repay the loan. Representatives of a collection agency, as a rule, offer the borrower several options for resolving the issue of a loan and set reasonable terms. If this does not help, frequent visits by agency staff to the borrower's place of work and residence may follow, during which the requirements are repeated more and more stringently. Very often, such measures resolve the issue in favor of the collectors. How can you protect yourself from the problems associated with the inability to repay the loan? First of all, approach this issue carefully and deliberately in advance. Assess your financial capabilities and existing risks before signing a loan agreement. And be sure to consult with a lawyer, what will be the consequences of non-payment of the loan under the proposed agreement.
