Kreditiweb community
How can we help you?
Question

Michael
March 25, 2020
Failure on repaying a loan
I'm thinking about asking for a loan, what if I can't pay it back?
0
0
Answer this question
1 answer

Kreditiweb
Asesor financiero
March 25, 2020
Kreditiweb
Asesor financiero
March 25, 2020

Hello Michael,
Planning is crucial when it comes to get a loan. Analyzing if you are in a good spot to handle the responsibility of a loan can make a big difference in your finances and avoid you to go throguh a rough moment that can affect your future.
If you did evaluated every scenario and there was something unexpected that stopped you from repaying your debt, the best thing you can do is to contact your lender as soon as you can and request an extension. This means to request a deferment on the loan repayment date.
Even though requesting an extension carries extra interest and fees that you must pay, it is more advisable to request the extension than not to pay the loan. Keep in mind that if you do not return the loan, your name will be passed to the lists of the major Bureaus and you will also have to pay a fine whose interest will be higher than if you request an extension.
So, loan providers normally will pass your debt to a collection agency first if you default on a repayment. If you are still unable to pay the debt at that point, some lenders will take court action in order to deal with the situation. If it is a secured loan, they can also take away the property, car or the object you left as a guarantee. However, this will not erase the debt.. In any of the cases, your credit score will be affected.
Have we been useful?
If the answer solved your question, please help us by rating our service
Answer the question
Lastest questions
April 14, 2020
Checking my credit score onlineApril 14, 2020
PAYDAY LOANApril 14, 2020
How risky is filling out online applications?April 14, 2020
Microloan of 100 bucksApril 09, 2020
Contacting LENDKEYApril 09, 2020
Rates for a payday loan