5 Good Reasons Why You Really Must Repay Your Loans. From www.trueblueloans.co.uk

2. 1.
The balance will always increase when a debt repayment is
missed. Missing a loan repayment can normally cause charges
and interest going onto that balance straight away making the
debt even harder to repay. Some financial lenders will charge
daily interest to a balance so if the debt will then be settled the
customer will realise they are paying much more than they
originally thought. If repayment is to missed always let the
lender know in advance on any due date as they make take this
into consideration when charges are added to the balance.

3. 2.
Being chased for any debt is never a nice experience for
anyone. People can get contacted on all numbers
provided in the financial application and this can include
work numbers and no one would like these forms of
personal calls at work. It could potentially lead to other
people finding out about the debt and that will be
embarrassing. People can also be contacted via text,
email and by letters being sent to their home address.

4. 3.
The stress levels for anyone will increase when they are
really struggling financially. Having a financial peace of
mind is always a nice feeling but on the other hand if
repayments are missed it will most likely result in that
person being stressed. People at times decide here to
bury their head in the sand and ignore debts however that
will only make matters much worse. Some people if they
have large debts have been known to lose sleep over
such things so it is a serious matter.

5. 4.
Missing any loan repayments will affect that someone’s credit
score. Whenever a payment is missed on a loan and if it then
stands outstanding for a long period of time it will show on a
credit file as being in default. This is a very serious matter as
when someone misses repayments and their credit score
becomes lower they will see that obtaining any future credit
becomes harder or potentially more expensive. This can be
hard for people who apply for large finance such as a mortgage
as it may be declined due to that person missing loan debt
repayments.

6. 5.
Negatively affecting Creditor relationships. At times it can
always be important to build up positive relationships with
lenders so if a loan or other finance is needed who can first
hand apply straight with them and probably be approved.
Missing repayments however can affect that status, if
repayment is missed and is overdue for a long period of time
but then is settled the lender may still decline about giving you
further finance. People that have a positive relationships with
lenders can even be offered such things as high loan amounts
or lower interest rates.