(1) Encountered penalty interest and liquidated damages: If the loan is not repaid, the high penalty interest will be encountered first. Some financial institutions need you to pay liquidated damages on the basis of penalty interest. These expenses add up to a lot, but if you don't want to get into the quagmire of loans, you must develop good repayment habits.
(2) Credit damage: If you borrow money from a bank and fail to repay it within the time limit, the credit report will be tainted, and it will be even more difficult to apply for credit cards and loans in the future. Because of petty profits, it is not worth the loss to miss your credit wealth.
Some people say that the loan I took from the online loan will not be included in the central bank's credit information. Needless to say, online loans and central banks are now more interconnected. Even in the online lending circle, there is a shared "blacklist" system. If one family doesn't pay back, it will be difficult to approve other loans.
(3) Various ways of collection: Banks and online loans have their own collection systems. Novices will text you and call you for money. In some serious cases, there will even be a collection staff pressing you around the clock, seriously disrupting your work and life. The average person can't stand this kind of "spiritual oppression".