When you have applied for bad credit personal loan, what is your commitment to yourself? I believe you have strong determination to pay off your debt promptly in order to get your finances back to control. But what if you face unforeseen financial difficulties and you fail to pay off your loan? Will there be any adverse effect on you? Seriously speaking, there are FIVE possible consequences you may face if you don’t handle your debt properly.
1. You will be charged high late fees
In general, most of the lenders charge higher late fees for borrowers who apply for poor credit personal loans. As long as you have missed payments or late payments, you are required to bear extremely high late fee charges. It can be a big cost for you.
2. If you have co-signer for your loan, your co-signer will be liable
For those borrowers who apply loan with their co-signers, the co-signers will be responsible for the repayment. Do you want someone who helps you to suffer?
3. Your credit history will be worsen
Since you already have low credit score, if you fail to pay back your bad credit personal loan, your credit score will drop dramatically and you will no longer be able to get any type of credit in the future until your loan is fully paid. If you are in the midst of applying for study loan, your plan will definitely be affected.
4. Collection action will be taken on you
When you fail to make your monthly repayment, it is for sure that your lender will take necessary action to collect the money from you. The representatives of the lender will be contacting you non stop to chase you for payment. The stressful part will begin if your lender gets the debt collection agent to collect the debt. The agent will call, mail and hound you from time to time for full payment.
5. The lender will bring you for legal proceeding
If the borrowers fail to make minimum monthly payment to their lenders, the lenders can take legal action to sue their clients. Basically, the creditors can file small claims report on their debtors in a local court, depending on how much the outstanding balances are. The debtors will receive the certified copies of court papers and the debtors can choose either to show up for court or ignore the complaint.
However, no matter which action the debtors take, a judgment for the plaintiff will be granted and the debtors will be made compulsory to pay the court fees. Isn’t it a heavy financial burden on you?
If you do not wish to see all these possibilities to happen in your real life, you had better make full commitment to pay back your loan on time. A bad credit personal loan is meant to assist you to rebuild your financial strength. It is not to make your credit worsen. Don’t misuse this loan.