Failure to repay debts is a serious problem that affects the lives of indebted people, the functioning of companies, but also the development of the entire economy. Although the vast majority still consider paying off debts a moral obligation, from year to year we observe less and less conviction in this matter. The very large scope of social consent to it is also disturbing consumer abuse in the area of finance. One of the reasons for this phenomenon is probably insufficient knowledge on the consequences of this type of action – says Dr. Artur Trzebiński.
Some debtors believe that it is not worth paying off their liabilities because they will become time-barred. However, it is wrong to believe that after this time the debt will disappear.
It should also be remembered that the creditor has the right to report information about the unreliable payer.
Avoiding paying off debts may hinder everyday functioning.
- Getting a loan from a bank – Dreams owning your own place will in many cases have to wait, if it turns out that the borrower’s account has an unpaid loan installment, e.g. a consumer loan, credit card or even an electricity bill. Why is this happening? When calculating the creditworthiness, the bank analyst always checks the data on the applicant to estimate the risk of granting a loan. If they contain negative information on the servicing of previous liabilities, the bank has the right to refuse to grant financing. It is a warning signal for the bank that also in this case the borrower may not meet the monthly repayments. However, it should be remembered that the databases also contain information that often has a positive impact on the loan decision, that is, about paying the loan installments on time. It is worth taking care of them several years before the planned loan application.
- Installment purchases – Installment purchase of household appliances or electronics is a convenient way to purchase the necessary equipment without burdening your home budget once or having to save for several months. Unfortunately, not everyone will be able to use this option. Despite the fact that all formalities are completed on the spot, in the store, if it turns out that you have unpaid debts it may result in a negative decision.
- Using subscription services – this may come as a surprise to many people, but an advisor in a mobile network or digital TV showroom also has the right to check customer data, after obtaining his consent. Unfavorable entries from previous service providers, proving that the customer did not pay their obligations on time, may prevent the use of subscription services.
All such unpleasant situations can be avoided by making a debt repayment. Currently, the indebted person has several options to settle the debt, especially when it has been taken over by a debt collection company. Having the appropriate tools and experience, the debt collector may offer the debtor to spread the debt into installments or the option of postponing repayment until the financial situation improves. Avoiding contact with the creditor or debt collection only works to the disadvantage of the indebted person. To read more click here.