What if I cannot repay?
People borrow money because they know they can repay, but unfortunately some cannot repay. It’s called default.
What happens if you cannot reply?
First, the bank tries to contact you if you didn’t repay. If you still ignore, possibly the bank officer will visit your place to talk to you directly.
The best way is you can discuss with him and try your best to repay some of the interests.
It’s very dangerous to borrow money from another bank to repay the loan.
Why? Because you will have more debt without any repayment plan.
Loan to repay your loan…
The amount of debt will increase more and more. Endless cycle.
It’s called multi-debt.
One point, you realise you cannot repay.
You are not happy. In the worst case the bank will go to court for legal action and your collateral will be taken.
Additionally, you cannot borrow money from banks any more in the future.
Maybe some private money lenders not registered under central bank will come and tell you that you can borrow money.
Or private brokers might guide you to a bank too but both are very dangerous because they charge really high from you and often they tell you wrong information.
How to avoid this? Let’s learn money with us!