What if I default my loan?

The case of defaulted loan must be stated in your agreement together with additional fees or other penalties. You should check it out before signing it. If when the loan is due and the lender tries to withdraw the money from your account there is no sufficient funds, the bank charges you a non-sufficient funds fee. And every time it’s done this fee will put you deeper in debt.

In case the lender doesn’t manage to draft the money from the bank account they may call you to collect the loan. They may also call your relatives, friends, colleagues, the boss. And the interest and other fees and penalties will be growing all this time. After 60 days your debt may be sold to a collecting agency.

Besides, the default will have a negative affect on your credit history.