1. Incurring penalty interest and liquidated damages

No matter where you apply for a small loan, you will sign a corresponding loan contract with the borrowing institution. Since you have signed the contract, of course You must act in accordance with the contract and fulfill your repayment obligations. Once the contract expires and you do not repay the money you owe, the first thing you will encounter is penalty interest, and some institutions will also charge a certain amount of liquidated damages according to the contract content. If you still do not repay the money, then over time As time goes by, your penalty interest will increase, and your repayment pressure will also increase in the future!

2. Personal credit report will be affected

Not having to pay penalty interest for owing money is only the first step. Your personal credit report will also be affected later. We all know that the country now attaches great importance to the construction of the credit system and is vigorously building a Credit China. The credit information system in various regions, departments, and fields is being gradually implemented, and various punishment and incentive measures are also continuously improved and improved. Individuals Credit will play an increasingly important role in future life.

If you fail to repay the loan, it will leave a credit "stain" on your personal credit report. If you want to apply for a loan or credit card in the future, you will be blocked.

Many financial institutions now have access to data from third-party credit reporting companies. Your loan data, shopping data, credit card repayment data and other information on other platforms can be easily retrieved. Once you are on the exclusive "blacklist" system of a small loan company, as long as one family refuses a loan, every family will refuse a loan, and it will be impossible to get a loan in the future.

3. Received frequent collections

There are three ways to collect loans: text messages, phone calls, and door-to-door visits. When you are in arrears in the early stage, the salesperson of the small loan company will kindly remind you through text messages or phone calls: It is time to pay back the money. But in the later stage, if the small loan company reminds you and urges you to repay the money again and again, but you are still indifferent, then they may send group text messages to let your relatives and friends know that you have borrowed money outside and have never repaid it, so that Your reputation is damaged.

In addition, some small loan companies will ask borrowers to fill in at least a few close contacts when filling in loan information, such as your parents, relatives, friends, colleagues, etc. Some require You authorize the reading of the mobile phone address book and the communication records of the operator's online business hall. When you fail to repay the money, not only you may be "bombarded with phone calls", but your family and friends may also be harassed, which will seriously disrupt the lives of you and your family.

In addition, if you still don’t repay the money, the debt collectors may come to your home to collect debts, or the company where you work to collect debts. In this way, your job may not be guaranteed, and the gains outweigh the losses. !

In addition, if you have a very bad attitude when collecting debts and do some scoundrel behavior such as insulting and beating the debt collectors, then you will ruin the room for negotiation with the small loan company and push yourself towards a dead end. ! Therefore, when you do not repay the money you owe, you should also correct your attitude and actively negotiate with the small loan company to solve the problem, so that you may also get a grace period.

4. Being sued by the court

After a series of collection activities, if the financial institution finds that the collection has been fruitless, they may file a lawsuit in court and use legal means to recover. To repay the loan, during this period you may receive reminder letters, execution documents, etc. from the court. Once the court pronounces the judgment, you must execute the repayment ruling even if you are 100 unwilling, otherwise the court will inquire about your property, or freeze it, seize it according to law, or conduct an auction. In short, all your property will be used to repay the debt.

5. In serious cases, you may be imprisoned

Generally speaking, non-payment of money is a civil dispute, but if the borrower refuses to execute the judgment after the court execution judgment is issued, , resolutely refuse to admit it to death, and act as a gangster, that is another matter. The court will pursue criminal prosecution, and if the circumstances are serious, you may be imprisoned.

However, generally speaking, only malicious debts may be subject to criminal liability. Generally, non-malicious debts will not involve imprisonment. However, for borrowers, not only is it not good for them to owe money, but it will also affect their family and friends. It is really not worth it. As a borrower, you should still base your financial income and repayment ability on Go borrow money.

Extended information:

If it is not a malicious debt, but money is tight now and cannot be paid for the time being, you can use the following methods to solve the problem

1. Apply Loan extension

If you have special circumstances and are really unable to repay the loan on time, then you must apply to the bank for a loan extension before the loan expires and explain the situation. As long as your repayment record is good and If there is a reason, then the repayment time can be extended after the bank's review and approval, but you need to go through the extension procedures, otherwise the loan will be treated as overdue.

However, how long the loan extension period is requires detailed analysis of specific issues. The extension period will also be different depending on the original loan period. Generally speaking, if it is a short-term loan, the loan extension shall not exceed the original loan period; if it is a medium-term loan, the loan extension shall not exceed half of the original loan period; if it is a long-term loan, the loan extension shall not exceed 3 years. Applying for a loan extension is a good way to temporarily reduce the pressure of repayment. Friends who have difficulty repaying can try it.

2. Borrow money from relatives and friends

If you cannot pay back the personal small loan for a while, you can also borrow money from relatives and friends to help you tide over the difficulties. After all, only family and friends will lend you money without charging a penny. Other than that, others will not help you unconditionally. Although you will owe a lot of debts by doing so, this is not the case. It is much better than being chased by debt collectors for not paying the money.

3. Use credit cards skillfully to repay money

For some people whose repayment limit is not very high, you can also use credit cards skillfully to repay the money. That is to say, use your daily living expenses to repay the debt, and try to use your credit card for consumption. This is equivalent to using your credit card to pay back the money indirectly.

Although by doing this, you may think that the wool comes from the sheep, and you will still have to pay back the money in the end, but for some debts that are urgently needed to be returned, you can temporarily reduce your financial pressure. Paying back urgent money, and then gradually paying back less urgent money, is also a clever method.

In short, as the credit system becomes increasingly complete, everything you do may be included in the credit system. Repaying debts is a matter of course. If you deliberately escape from the responsibilities you should bear just for the sake of immediate benefits, then not only your life and work will be affected, but even your relatives and friends will be affected. If you don't want this kind of thing to happen to you, then consume in moderation and live within your means. If you borrowed money from a bank or small loan company, repay the loan in full and on time so that there will be no "stain" on your personal credit.

Reference: Baidu Encyclopedia - Small Loans