When money is urgently needed, a payday loan is the easiest way to solve a problem. However, before submitting an application, you should carefully consider the pros and cons, objectively assess your financial capabilities. After all, late payment of online debt can have serious consequences.
Penalties and some tips about them:
- First of all, a delay in pay-off can lead to substantial fines. And do not think that the penalty that has come over in a few days will be insignificant. Firstly, such a negligent attitude is a bad habit, and secondly, amounts can be rather impressive. They depend on the total online loan and the terms of the contract.
- Usually, the agreement specifies all types of extra payments for failing deadline. Therefore, it is necessary to study the contract on payday loans with a special care. Even in the case when the client is fully confident that he or she will be able to return money on time.
- Most often, such sums are charged as an additional daily interest rate. Therefore, preference should be given to the financial agencies that offer not only favourable terms, but also acceptable fines in case of delay. Be wise to consider the option of additional payments – yes or no.
Reputable microfinance organizations are ready to support their customers. Thus, some well-known companies envisage no accrue interest for several days after the expiration of the contract. After all, the delay can occur not due to the fault of the payer, not intentionally. If during the grace period a user does not return the debt, the penalty is charged on these days.
Possible consequences: what to know
- You must understand that the loan will have to be repaid in any case. If you do this at first, the amount will not be much different from the original. But after a few months, it can hit its size.
- Some MFOs prefer to solve problems through the courts. This is the worst possible case for both the vendor and the client. Other company, if such is provided for by the contract, transfer debt obligations to third parties. And professionals who will be responsible for the deal are really tough people, this is not a kindergarten, for sure.
- Another important point is the worsening of the credit score. In our country this is a real nightmare. Like ordinary banks, the agencies send information about cooperation with clients to the Credit History Bureau. A delay of several days does not particularly influence your profile. But remember: a substantial delay in payment or refusal to return the loan will lower the user’s credit rating to the bottom line.
Read carefully our article and make the right conclusions.