The consequences of not paying loan debts

The planning of your finances, savings and good investments are powerful tools that maintain your financial well-being and tranquility. However, there are bad times that can affect them, including the late payment of debts due to lack of liquidity. Know the consequences of not paying debts and what you can do to counteract them in this article.

Consequences of not paying debts and how to counteract them

Consequences of not paying debts and how to counteract them

For different circumstances in life, there are times when lack of liquidity makes you fall behind in the payment of your credits. However, there are methods to avoid them, or in your case, counteract them. For each consequence, we tell you how to avoid it or how to reverse it.

Moratorium interests

Moratorium interests

When you fall behind with your payment date, you will begin to generate delinquent interest. This is a penalty for not respecting the deadline.

Also, check the terms and conditions of your credit before requesting it.

How to reverse it : If for some reason the expiration of the payment date was due to an oversight or an unforeseen event, talk to the credit institution. If at the moment you do not have sufficient liquidity to cover the payments, rethink your debt to reduce monthly payments or reach an agreement.

Bad score in the credit bureau

When you fall behind in your payments, the credit institution will notify the credit bureau of your lack of payment, thus generating a bad credit history. This may affect you in the future with other credits, making it more difficult for you to take advantage of other credit opportunities.

One of the things you can do is to borrow without a bureau and pay them in time to rebuild your history little by little.

Delay in your economy

Delay in your economy

Being indebted makes your income cover your basic needs and your outstanding debts, making savings more difficult.

How to avoid it: if you have the habit of saving, your liquidity problems will be avoided. This in turn will make it possible for you to pay your loans and credits on time.

How to reverse it: Start your savings plan. Even if it’s $ 10 a week, it does not matter. The joke is to save, form the habit and grow your savings over time to avoid falling into the lack of liquidity.


In the case of large loans, such as a mortgage, there is a property under warranty. By significantly delaying your payments, the bank can pick up the property. In other types of loans and with a significant delay, the credit institution can collect items of your property to cover the debt.

How to avoid it: Of course besides paying on time, try at least to pay the minimum. Continue saving so that after a while you can pay the capital of your debt and reduce it significantly. If not, you must reach a payment agreement with your credit institution.

How to reverse it: Find legal support for this situation and review your individual case to see if there is anything that can be achieved with the credit institution.

The good news is that these situations can be avoided once you have the habit of saving and good planning of your finances, regardless of whether your income is large or small. Remember that your good economy is in your good habits and planning.