In Nigeria, not repaying a debt could lead to court penalties, but little is known about this for good reasons. You usually won’t go to jail for defaulting on a loan because it’s a civil matter rather than a crime.
According to http://comparisons org, a personal loan sounds like a terrific approach to get the much-needed money while you are in a difficult financial circumstance.
The procedure is quite simple, and everything will be OK as long as you pay your monthly bills on time. But what happens if you find yourself in the challenging situation of being unable to repay your loan?
If you obtained the loan from a reputable financial institution, skipping one payment shouldn’t be a problem for you, especially if you informed your lender well in advance. In reality, you might be able to reach a compromise if your credit score is respectable and you keep your bank informed of your financial condition. The bank, however, has the power to sue you if you consistently miss deadlines, and the incident will be noted in your credit record. Your credit score will consequently decline, which could have an impact on your future capacity to borrow money.
Your lender could use a variety of tactics before turning to the legal system to persuade you to make the payment. They have the right to take whatever money you may have in any current or savings accounts you may have with that particular institution. In the worst-case situation, your home, vehicle, or other item used as collateral could also be repossessed. Finally, if there is no collateral that can be taken, the bank will turn over your file to a collection agency, which will make an effort to collect the debt, frequently in an unpleasant or obnoxious manner.
When dealing with loan sharks or other unregulated sources, things become a little more challenging. There are an increasing number of websites that promise quick cash to folks with poor credit who can’t get funding from a reputable source. These loans feature exorbitant interest rates, which is made worse by the requirement that you give the lender access to your bank account information, personal information, and permission to make direct withdrawals whenever they like.
There can be a number of unpleasant consequences if you skip a payment. Your lender may have taken the entire amount from your pay check while still charging you exorbitant late fees, leaving you with nothing. In the case of loan sharks, threatening or abusive phone calls are used to intimidate borrowers into making payments. However, the most unsettling feature of dealing with loan sharks is that the lender, who is a total stranger to you, is aware of where you and your family reside and is free to visit you whenever he pleases.
Legitimate financial organizations are simpler to deal with when you miss loan installments since they are more inclined to negotiate a resolution before taking legal action. As a result, you should steer clear of unregulated sources that advertise abundant riches without any type of security. If that’s your only alternative, make sure to just borrow what you absolutely need and establish a plan to pay it back as soon as you can to prevent piling up too much debt.
As a matter of fact, The police and other security personnel won’t be needed because the failure of a debtor to pay his debts is a civil violation rather than a criminal one under the law. They lack the authority to bring charges against a debtor.