You know what? It was a much more serious debt than you thought it was, and it was a credit defect that was worse than overdue. If you have bad debts on your account, you may face the serious consequences below。

What happens if you don't deal with bad debts

First of all, bad debts could hack your letters. Uncollectible accounts normally refer to amounts that have not been recovered within the repayment period and that may remain uncollectible after repeated reminders, thus becoming bad debts. Once your letter-of-assist report shows a bad record, it leaves an indelible stain on your credit history. This could have a serious impact on your financial planning, as many loan products would reject your application。

Secondly, if your loan is turned into bad debt, you may have to bear an expensive overdue interest rate. Many lending institutions calculate the penalty based on the number of days you are overdue, and once your term is extended, the penalty you need to pay may increase, which will increase your repayment pressure。

In addition, the loan institution may suspect you of malicious overdues because of your bad debts record. If they have the relevant evidence, they might sue you. In the event of an indictment, you may have to bear the arrears and the costs of the proceedings。

Bad debt records may also affect your employment and promotion. In a number of companies, employers will consider your letter-writing reports, which may reduce your credit rating in the employer ' s eyes, thereby affecting your employment and promotion opportunities。

However, you need not be too worried, because the effects of bad debt are not insurmountable. If you have a bad debt as a result of the overdue loan, then you can pay off all the arrears and settle them properly. Normally, as long as you clear the arrears and sell them, the bad debts records can be cleared. The treatment was very similar whether it was due to premiums, credit card annual fees or bad debts for other reasons. It is important for you to know that all uncollected debts are not subject to interest charges and that only the principal amount due is paid。

In general, early action was essential to deal with bad debt in order to avoid more serious consequences. However, it should also be noted that any treatment of bad debts should not include the payment of excess amounts。