Debt payment is a very important trait that every individual should have as it reflects on your credit worthiness. Procrastinating your debts will prove worse in due course of time, and may restrict you from taking up additional loans if required. So what happens if you don’t pay your debts on time??
This is the story of Adam
Adam had taken up a loan to buy a new car for himself. He had been given due time of 2 months to pay the loan. Since the loan had been taken from a legal lender, he was quite relaxed and assumed that he will not be threatened.In due course of time, Adam quits his job for personal reasons and stays unemployed for 2 months.
Gradually, with the problem of unemployment he also faces another difficulty – loss of money to pay off his debt.What happens now is, he is called by the lender before the due date, reminding him to pay off his loan before hand, else he will have to pay a fee.This could be avoided by paying off before reminders from the lender.But Adam crosses the due date and the lender keeps contacting him. Adam will have to pay charges as per the contract resulting in a negative impact on his credit record which will prevent him from taking loans in future.Unable to pay, the lender sends field officers to Adam’s house to get his payment collected and gives a final warning to pay on the required date by the lender and since Adam does not pay, he is revisited by these officers day and night.
Finally, the lender directly takes Adam to court and presses charges against him for not paying back his money. Now Adam is overburdened with the fees, contract charges and charges for his attorney too. Adam loses the case and is required to pay the full money else his property gets ceased.
Learnings from the story were :
- Always pay debts before due date
- Try settling directly with the lender to avoid third party authorities
- Avoiding debt payments will prevent you to take loans in future
- Save,Insure and Invest for a happy future