Have you ever wondered what it takes to delay the payment of loan installments? It is essential that you know the consequences of late payment and how to prevent them.
When requesting a loan it is important to read the contract carefully and check for the clauses concerning the delay or the payment of the installments. In fact, some financial institutions give the possibility to skip or postpone one or more installments. This option is not to be underestimated because it could happen that, for one reason or another, you are unable to pay a loan installment on time and the clause of the jump in installment certainly avoids many inconveniences. In any case, if you delay payment, the bank has a duty to notify you.
Let’s see what happens if this option is not present in your contract and you risk delaying the payment of loan installments.
Delaying payment of loan installments: what happens?
Delaying payment of loan installments has different consequences:
Increase in interest
When you delay the payment of one or more loan installments, you are first charged a fine, the amount of which is established in the contract. As a result, accrued interest increases.
Reporting to databases
The delay in the payment of one or two installments of the loan involves reporting to the end-to-end knowledge company. The report remains for 12 months from the time of payment regularization.
If the payment is delayed by three or more installments, the end-to-end knowledge company report remains for 24 months from the moment in which the payment is settled.
Early termination of the contract
If the delays become unpaid installments the credit institution may request the early termination of the contract with consequent early and immediate repayment of the loan and debit of the costs incurred for the recovery of the credit.
If the loan is not repaid despite the early termination of the contract, the credit institution can avail itself of the forced recovery, such as, for example, the attachment.
Have you delayed the payment of the loan installment and do you need a new loan?
Do not worry! If you want to avoid delaying the payment of installments of a loan you can always apply for loans against salaries or pensions. Thus you will not have the thought of having to pay the installment every month as it is withheld directly from the pay slip or the pension slip.
Furthermore, the assignment of the fifth is also granted to those who have been reported to the central credit registers. Discover all the advantages of the sale of the fifth!