With the appearance of so many financial products in the money market, it became quite easy to grab the urgent money. Quick Short Term Loans are one the popular financial scheme among the masses that allow them to get easy and swift support in need. With these services, working class folks can easily and effortlessly obtain the few hundred bucks against their upcoming salary. They commit to repay money in lump sum as soon they receive the next paycheck in their bank account.
But at times, some people end up facing difficulties while making the repayment due to some or other problem. This inability to make timely payment invites several severe consequences that could be tough to handle by an individual. That is why, it is must to plan finances in advance and borrow the amount as per your capacity to avoid being a victim of consequences of non repayment.
Here are some of the consequences of non repayment of short term loans that will encourage you to make timely payment and avoid such situation. Penalties of late payment or default are mentioned below:
• The main consequence that the borrower faces is heavy financial penalty that makes small loans quite expensive. These penalties keeps on growing until you pay it back in full.
• Lenders will report the non payment to the credit bureaus which put negative marking on your credit report. This eventually reduces your credit rating and put the tag of blemished record holder.
• Nowadays lenders automatically withdraw the amount from borrower’s bank account on due date. In case, you don’t have enough cash in bank account the transactions may decline and you will be charged with fee by bank. This additional fee and number of failed transactions can become the reason of closure of your bank account.
• When you don’t make the payment for long time, lender will transfer your case to collection agency. They will charge you extra fee and harass you through different ways.
The consequences of non-repayment of small loans may affect your life adversely. Therefore, choose the Quick Short Term Loans with extreme care and handle it perfectly to experience hurdle less lending.
