With the spread of credit card consumption and Internet lending, late repayments have become an unavoidable topic in modern society. So, what happens to late repayment? And then we're going to look at it from several angles。

What happens to overdue payments

First, the immediate consequences of late repayment are, of course, the creation of a penalty and a standstill. Both credit cards and Internet loans are subject to a percentage of interest and late payment. These costs increase the original burden on borrowers and have a considerable impact on them after a long period of accumulation. The timely payment of arrears was therefore essential。

Second, late repayments could also have a negative impact on individual credit records. Financial institutions, such as banks, credit card companies and web-based lending platforms, all send credit information to callers, while overdue repayments are recorded in individual credit records and have an impact on subsequent credit evaluation and borrowing. When personal credit records are affected, they affect the daily lives of individuals, such as the inability to purchase a commodity car loan, the inability to borrow through the Provident Fund, etc。

Thirdly, late repayments may also lead to consequences such as a collection company coming to the door and even litigation. Once the debt is too long overdue, financial institutions may transfer the debt to professional collection companies to pursue it and even adopt legal means to recover it. This would not only increase the personal repayment burden, but also create physical and mental stress。

Finally, late repayments could lead to adverse effects in human relations. For example, debt problems may be told to families and friends, leading others to lose trust in themselves. This information may also be disseminated on social networks, further expanding its reach。

In the light of the above, the potential consequences of late repayments are economic, personal credit, legal, interpersonal, etc., so that timely repayment is particularly important. In the event of undue delay, there is a need to proactively approach creditors with a view to extending the repayment period or establishing a more reasonable repayment programme。