Going to financial loans is a very common option when you need some help to make an investment, but this is sometimes risky, so we recommend you to be well advised by a professional before signing the contract. But when can a loan become a problem? What difficulties may arise?
Revolving and consumer loans
Revolving loans are loans that do not have a fixed number of installments, as with a credit card. Before applying for this type of loans, it is advisable to check the prestige or security that the company offers in the market and check its recognition by the Lite Lender. If you make sure that the conditions they offer fit your situation and you will be able to face them, you will avoid future problems with payments or with the reliability of the corresponding entity.
On the other hand, consumer loans are an alternative to revolving when the purpose is to make a purchase like a car, for example. They are usually regulated, in addition to being less expensive for the buyer. In this case, it should be taken into account if it is contracted with the issuing entity or with an intermediary company, since, in this case, credit search services will have to be paid in different entities and can become a problem Extra financial
When it comes to urgent loans it is common to forget the review of the conditions or guarantees of the corresponding entity, you should always distrust the easy money and check that the best available option is being used for the case being addressed. The need for urgent financing may pose a risk.
If you opt for the possibility of a loan whose guarantee must be the car of the interested party but this cannot continue driving, precautions must be taken because in most cases, two things will be signed simultaneously . On the one hand, the sale of a vehicle with the delivery of keys to whom you lend the money. On the other hand, having sold it and continuing to use it, you will sign a contract whereby you rent your car with a repurchase option. Lenders may be unclear on this point, so be careful before closing any deal.
In this way, if you stop paying the mentioned rent you can sell our car, since it is yours, so, we will run out of it. In case you want to buy it back, when you make accounts and add the rental months that are due until you buy the car again, you could find that the interest equivalent to the amount they lent you is up to 150%. Maybe you would have to opt for credit refinancing or other urgent credit.
The problem with this type of credit is that since it is a rental and not exactly a loan itself, the parties agree on the amount borrowed. In the case of credits, if they have limits and are forced to regulate. Therefore, it should be borne in mind that they may be taking advantage of a small legal loophole disguising themselves commercially as a loan, which in reality is not.
Stop paying a loan
Failure to pay a loan, whether mortgage or personal, can have serious consequences and become a problem. In the management of any budget , timely payment of debts must take priority over other expenses to avoid a greater evil. You should never make the decision to stop paying a loan as a solution to an economic problem because far from being a solution, it will be the beginning of much worse problems.
If there is a change or an obstacle in the economic situation that really makes impossible the fulfillment of the debt pool, it is best to approach the bank or cashier to communicate the problem before the payment is due. It is always more advisable to anticipate the problem than to wait for it to be claimed.
Any person, individual or company, may encounter financial difficulties at a given time and credit institutions prefer to charge for what to expose the problem and seek solutions or debt refinancing can be a good preventive method.
It is very possible that the entity proposes some measure such as the aforementioned debt refinancing, establishing a longer term so that the fee to be paid is lower, or even the granting of a period of lack , during which only one would have to pay the interests
With the first installment that is not paid, the bank will apply late payment interest, the rate of which is usually much higher than ordinary interest. The bank may also charge a very high commission for claiming unpaid fees. These interests and commissions are accumulating to the original debt so that with each day that passes more money is due. It is not recommended in any case to take the route to stop paying directly to avoid conflicts.