You still can’t pay back that debt, even after all the warnings you’ve had. If you find yourself in a situation like this, then this article is for you. In the case of legitimate moneylenders, you won’t have to worry about being harassed left, right and center, but you will be visited by debt collectors on a regular basis. IP Credit, one of the best money lender in Singapore, is a legitimate moneylending institution that you can rely on when in need. With that said, here are some consequences of defaulting on your loan:
Pressure
These individuals have received the necessary training to exert pressure on you in order to get you to repay your debts while staying on the legal side of the situation. Even if they aren’t technically breaking the law, they may still be pretty damn intimidating. And that’s saying a lot. It might be anything from receiving a barrage of letters, SMS messages, and phone calls to your employers, close relatives, or friends to get in touch with you.
Negotiation works
If you are having problems repaying your debts, the better thing to do is to negotiate and come up with a payment plan you can live with, perhaps at a lower interest rate. Running away from your obligations is not the wise thing to do; the wise thing to do is to bargain. You can accomplish this goal by working through debt collectors or by having a conversation with the moneylender themselves. You can bet that the person lending you money would want to get their money back as soon as possible rather than see you go bankrupt, which is why they are typically receptive to negotiating a lower interest rate.
Losing assets
After trying financial counseling and finding that you are still in a hole that is too deep to climb out of, you may be forced to file bankruptcy. If this happens, you face the possibility of losing assets including your vehicle or investment property, but it is your final option if you truly, truly are unable to pay back your debts.
Because of the high rate of interest, personal loans, whether obtained from a bank or a licensed moneylender, should only be utilized as a last option when absolutely necessary. If you find that you frequently need to borrow money from licensed moneylenders because of problems with your cash flow, it is time to create a more stringent budget that will assist you in living within your means and finding ways to increase your income. If you find that you regularly need to borrow money from licensed moneylenders, it is time to create a more stringent budget.