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Five reasons to always repay loans www.trueblueloans.co.uk

5 Good Reasons Why You Really Must Repay Your Loans

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Five reasons to always

repay loans

www.trueblueloans.co.uk

1.

The balance will always increase when a debt repayment is missed. Missing a loan repayment can normally cause charges and interest going onto that balance straight away making the debt even harder to repay. Some financial lenders will charge daily interest to a balance so if the debt will then be settled the customer will realise they are paying much more than they originally thought. If repayment is to missed always let the lender know in advance on any due date as they make take this into consideration when charges are added to the balance.

2.

Being chased for any debt is never a nice experience for anyone. People can get contacted on all numbers provided in the financial application and this can include work numbers and no one would like these forms of personal calls at work. It could potentially lead to other people finding out about the debt and that will be embarrassing. People can also be contacted via text, email and by letters being sent to their home address.

3.

The stress levels for anyone will increase when they are really struggling financially. Having a financial peace of mind is always a nice feeling but on the other hand if repayments are missed it will most likely result in that person being stressed. People at times decide here to bury their head in the sand and ignore debts however that will only make matters much worse. Some people if they have large debts have been known to lose sleep over such things so it is a serious matter.

4.

Missing any loan repayments will affect that someone’s credit score. Whenever a payment is missed on a loan and if it then stands outstanding for a long period of time it will show on a credit file as being in default. This is a very serious matter as when someone misses repayments and their credit score becomes lower they will see that obtaining any future credit becomes harder or potentially more expensive. This can be hard for people who apply for large finance such as a mortgage as it may be declined due to that person missing loan debt repayments.

5.

Negatively affecting Creditor relationships. At times it can always be important to build up positive relationships with lenders so if a loan or other finance is needed who can first hand apply straight with them and probably be approved. Missing repayments however can affect that status, if repayment is missed and is overdue for a long period of time but then is settled the lender may still decline about giving you further finance. People that have a positive relationships with lenders can even be offered such things as high loan amounts or lower interest rates.