When needy borrowers especially students land up with tensed faces in front of loan lenders, it hardly takes time for the former to get the desired loan from the latter. But if someone fails to repay the amount in time no matter what reason it may be, he might be in big trouble. Once your loan acquires the defaulted status, you will almost be robbed of all the advantages provided to a student. In fact, you can never be eligible for credit cards and neither for loans and mortgages. The present banking rules have been quite stringent and so it’s not easy to get away without repaying loans in time.
Now, let’s have a look as to what consequences defaulted loans can bring on the borrower:
- Failing to repay student or private loans can hike up your financial liabilities. Missing out installments or failing to fulfill any obligation can make you land up in court trials.
- Your personal bank accounts will be deactivated. In fact, you will not be permitted for executing a single transaction.
- There will be maximum chances of a bankruptcy.
- If you are student, you will be denied all sorts of financial aids reserved for a student.
- Heavy penalties may follow and you might even reach behind bars.
Another wise option is to go for any rehabilitation program. This might be certainly taken into consideration by your investigation bureau. Keep in mind, the longer you hold on to the loan, the higher are your interest rates. In fact, the fees will also become higher. So, if you are looking for a pay day or a cash advance loan, you can do some web researching. Remember, the rates of interest, fees and the terms of repayment might extensively vary from one lender to another.