In today’s life where we have so much in the name of expense, debt is something that we all have in common. Some end up taking it to purchase something that they cannot afford currently, while some are forced to take it because of a certain crisis. So, the list of the reasons why people get into debts is endless, and indeed debts are made to help people who are struggling financially.
Well, debt is something that you have to return in the end along with the interest that depends on the lender from whom you are borrowing the money. Unfortunately, not every people are able to complete their debt intentionally and unintentionally both. Whatever may be the case, ignoring your debt is the last thing that you would want to do, if you have even the tiny glimpse of the consequences that you would face.
Still, there are plenty of people out there who just put the reminding letter of the debt and just bury their head into the sand in just the hope that the debt will go away. No matter how much try to run away from debt, it will eventually catch up to you with more pace and more impact. Here, in this blog, we have prepared a list of things that could happen to you if you keep ignoring your debts for a longer time. So, let us see them one by one.
5 main reasons why you should not ignore your debts
- Be ready to pay heavy interest
Any typical loans come with an interest rate which is basically the additional amount that you will have to pay along with what you had borrowed. Well, one amazing feature of interest rate! It keeps on accruing and the more you delay, the higher you will have to pay. Eventually, it will be you only you who will have to suffer the consequence where you will have to pay a big amount of interest along with your loan. Therefore, you don’t want to be crushed on a mountain full of debt, then try to be punctual while paying your debt repayments.
- Chances of CCJ
Well, nobody likes to lose their money whether it’s a casino player, stock investor or a lender. If you are procrastinating your debt over and over again even after receiving an alert from the lender, then he could file a CCJ (County Court Judgement) against you. And if this happens, you will likely have to be available in the court and if found guilty, you will have to pay the entire amount of debt within a month. And if you will have no option other than clearing the debt, or else the court might take strict action against you or a major chunk of the money could be extracted directly from your account without any notice or information. Therefore, in order to save yourself from happening such situation, apply for very bad credit loans no guarantor at a direct lender who offers such loan products.
- It affects your credit card drastically
As you are already paying up your debt then you must well aware of the procedure of the loan. Among all the things that the lenders see before approving the loan, a credit profile is the first and the most important one. Yes, the reason why got the approval of the loan, was your good credit score that is somehow become the past tense. Late repayment of fees, rents, and bills works as a stain on your credit profile that is quite difficult to remove. Also, having too many unclear debts also affects your credit score which basically defines your debt returning potential.
- Hamper relationship
Another major toll that your debt would take from you is by affecting your relationship. As you have been avoiding the lender about the debt, he would have no option rather than calling to your family members and closed ones reminding them about your debt. Well, this could affect your relationship much more badly than you can imagine as they don’t want to suffer because of your financial mistakes. Thus, it would be better that you do everything to avoid such circumstance and if there are any small repayments, you could probably apply for doorstep loans and use the fund to get rid of small debts.
So, these are the consequences that you could face if you keep ignoring your debt for a longer period of time.