Funding is often used to buy a car or to face unexpected expenses. However, it may happen that we find ourselves in a moment of economic difficulty and we are unable to pay the monthly installments agreed with the financial institution to which we have turned. What are the consequences in these cases? What happens if you don’t pay a loan? Let’s try to understand it together in this article.
What happens if you don’t pay a loan? What do you risk?
If for a variety of reasons you find yourself unable to pay the loan installments, you will first receive several payment reminders from the financial institution. In these cases it is always advisable to contact the credit institution and agree on a repayment plan together, perhaps by reviewing the plan itself, extending its duration and redefining the most comfortable installments to pay .
If, however, the reminders will not be considered, unfortunately, the financial institution will be forced to report the person in the various databases, such as the Crif, as a bad payer . ” Crif “, like other institutions that manage financial databases, is a company that collects and profiles all information on requests for loans, obtained and rejected by various credit institutions throughout Italy. To find out more, just read the following article.
What happens to those who have been negatively reported to a creditworthiness database
That is if they have delays or if they do not pay the installments of a loan? In this case, if there is a need to obtain additional liquidity in the future, the Banks are not willing to grant it with personal financing. The only form of loan that you can access, always evaluating the creditworthiness of the applicant and safeguarding the overall debt is the transfer of the fifth .
It must also be said that, in addition to the above, the delay or non-payment, even of just one installment, of a loan entails the addition of default interest to the entire sum disbursed . If, on the other hand, it is no longer possible to repay the sum received on loan, there is also the risk of a legal action by the credit institution which can go as far as a foreclosure procedure against the holder of the loan.
What happens if you don’t pay a loan? The assignment of the fifth can be the solution
As mentioned above, if you are in difficulty to pay off a loan, you can access the loan with the assignment of the fifth and consolidate the current loan (s) that you are unable to pay obtaining a double benefit. The first is to lower the total monthly installment to be paid due to the fact that the payment can be deferred up to 10 years, while the second is that the transfer of the fifth allows you to have very high amounts paid and in this way allows you to consolidate many small ones. loans often with high interest. You can calculate a quote directly on our website.