Can You Go To Jail For Not Paying Loan Philippines?

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Can You Go To Jail For Not Paying Loan Philippines? This is very popular question among Filipinos. Many people think about it, cause ones get into the situation when no money in your wallet, but you need to repay loan in the nearest time. How can late repayment or even non-payment influence your financial health?

Our article will tell you more about such situation and how can you solve it in the Philippines.We’ll try to find several liefhacks which could help borrower if he/she missed the payment date or decided not to repay loan at all.

Jail For Not Paying Loan Philippines

If we check The Cambridge Dictionary, it defines non-payment as the failure to repay a loan / exact sum of money which was owned. The financial wellness is very important for all Filipino, but how to keep improve it,not everyone knows.

Can You Go To Jail For Not Paying Loan Philippines

When people apply for a loan online Philippines and then repay it later, it means that you damaged your personal finances. We understand that you just can’t repay loan, but why then you have applied one? This question is the main must be in your mind before your application in the loan services. Especially, we mean unsecured loans with high interest rate and higher one, when borrower decided not to pay loan or repaid it late.

Ok, let’s see what will happen, if you will not repay loan on time in the Philippines.

  • you missed your payment date;
  • refused to repay your online loan;
  • etc.

All higher decisions will lead you to higher debt before the lender. Of cause, each loan service has it’s own term agreements, interest rates, but the results will be the same. Borrower will be penalted by loan company, higher fees and additional charges are waiting for the person who decided go this way. Also, credit score will be decreased and such borrower will not be able to use bank servicesin furture untill the time when he/she improve credit score back.

  • If you default on loan, it means that you launch additional collection processes on the side of lender: additional messages, calls to you and in a lot of cases company can call to your relatives, etc;
  • your credit score will become lower, cause this information will be fixed in your repayment history, in other words a borrower is not creditworthy; this also means, that borrower could have difficulties in applying new loans;
  • if it was secured loan, then borrower can lose one’s collateral.
Jail For Not Paying Loan Philippines

So, what is the answer for the questions “Can you go to jail for not paying loan Philippines?”. What are the consequences?

So, What To Do

Very often, the right solutions are before our eyes, but usually we don’t see them:

  • If you need money asap for something an important, you can just refuse this idea and don’t apply for a loan online or offline. Yes, it is difficult, but it will help you to keep your financial wellness in a better condition.
  • Loan – it is responsibility. All borrowers should remember it and follow the RULES which the borrower MUST READ before applying the loan;
  • Loan companies always send notifications when borrower should repay the loan – control your payment schedule, be aware about it and repay loan as faster, as you can, cause if you will be late with it, some lenders can harass borrowers with the collection – not all lenders have strict collection processes;
  • Alsways read privacy policy and other important documents about the lenders;
  • After the ending of payment date borrower usually have additional 2 days to repay loan, if the loan status will not change, lender will change your account to overdue one;

Besidies, lenders don’t focus users in information about what are exact penalties, fees, charges, if Filipino will be late with the repayment.

Summary About The Situation When You Decide Not To Pay Loan In The Philippines

Summary About The Situation When You Decide Not To Pay Loan In The Philippines

User Review 4.29 (14 votes)
Linda Carters/ author of the article

Financial Journalist on Advance Loans Philippines with 8 years experience in a Fintech niche.

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