The impact of bad debts
The impact of bad debts is very serious. We must pay attention to bad debts. Once you find that you have bad debts under your name, you must contact the relevant institutions in time, ask the reasons for this bad debt, and pay it off. Because bad debts are a very serious overdue situation in the credit report, this degree is much more serious than the general loan expectation, because bad debts are overdue for a long time and the overdue amount is also very large. If you have bad debts in your name, it means that you have nothing to do with the bank, and you can't handle credit business in the bank, such as applying for a credit card or a loan.
How to deal with bad debts?
In fact, the way to deal with bad debts is relatively simple. As long as you find that you have bad debts under your name, you must repay them in time, and then the bad debts will disappear. After repayment, you must cancel your account. As long as you pay off the bad debts, this record will only be kept in the credit report for five years, and will be automatically eliminated after five years, which will not cause particularly serious impact. However, during these five years, you can't go to banks and financial institutions to handle credit business. It is best not to have bad debts under your name, but to check the credit report in time, twice a year.
Many people don't understand the causes of bad debts. Bad debts are actually bills that you haven't paid for a long time. Maybe you forgot to pay it back, or maybe you have no money to pay it back. During this period, you may have changed your phone number, so the bank or financial institution can't contact you, and the money will remain in the account and will not disappear. After a long time, it will become a bad debt.