With the spread of Internet-based purchases and the rise of Internet finance, Internet-based lending as an easy form of credit has become increasingly popular. However, the ensuing issue of overdues has also been the focus of attention by a large number of borrowers. So, what are the consequences of the overpayment of the Internet loan

The consequences of Internet lending

I. IMPACT ON PERSONAL ACCESS

Overdue Internet lending will affect borrowers ' credit records in their personal credit systems. If you are long overdue or are in arrears for a certain amount, you will be placed on the “blacklist”, which will have an irreversible impact on your credit records. Not only does it have an impact on the various forms of credit consumption in your daily life, but it can also have a negative impact on future applications for loans or credit cards。

II. CORRECTIONS AND IMPACTS OF THE RECEIVATION

After the expiry of the loan, borrowers will receive constant calls and text messages, and some of them may resort to coercion or even verbal intimidation. This will not only affect the daily lives of borrowers, but will also entail psychological burdens and distress。

III. Cumulative amount of principal and interest on debt

Interest and penalties will arise when Internet-based loans are overdue, and the accumulation of these costs will lead to an increase in the principal of the debt. For those whose lives are inherently more demanding, when these costs accumulate, they eventually make repayment more difficult。

IV. Potential for litigation and higher costs of litigation

If the borrower fails to communicate and resolve the problem effectively after the deadline and is in large arrears, the Internet lending institution will go to court. Once in legal proceedings, the difficulty and risk of repayment increases, while at the same time creating higher costs of litigation. It was therefore suggested that borrowers with overdue issues should contact their lending institutions in a timely manner to negotiate their resolution and avoid the risk of litigation arising from the lack of consensus on overdue issues。

In general, the issue of overdue online lending needs to be given high priority by borrowers. Borrowers should raise their own risk awareness, increase income, control expenditure and avoid delays. If overdue issues have arisen, timely communication and consultation with lending institutions is undertaken to resolve them as soon as possible to avoid unnecessary distress and risk。