While making the payments for the borrowed amount there are times when one fails to pay the funds on time. And this failure leads towards the financial penalties that have to bear by the borrowers. In most of the cases, it becomes difficult for borrowers to pay the penalty and they already facing problem in making the initial payment. That is why, experts always advice borrowers to keep up the payments to avoid late or non payment penalties.
What Are The Late Or Non-Payment Penalties?
Late or non-payment penalty is a fee imposed by the lender when borrower don’t make the make on the due date. In most of the loans, borrowers have to make the payment within few weeks if they fail to do so then each passing day after due date add the penalty fee in their initial payment.
Late fee is charged by the lenders when the payment is received after few days of due date or the grace period. Usually lenders take the late fee with the payment so the coming payment will continue smoothly.
But it isn’t the case with non payment penalties. These penalties are charged when lender do not receive the payment at all. These charges are added on the next payment where borrower has to give huge amount. But if borrower couldn’t able to afford it than they it is distributed among all the coming payment which increases the monthly payment. It is advisable to note that lender can also increase the rate of interest if borrower misses payment after every short interval.
How Much Will It Cost You?
There is no set amount that is charged by the lenders as a penalty. It varies according to the lending policy of the lender. These penalties can also vary on the loan amount, the repayment term and the time taken after due date to make the payment. It is important to note that non payment of these penalties can increase a trouble for you in the form of court case in case of unsecured loans, repossession of your property in case of secured loans, etc.
How To Avoid These Penalties?
In order to avoid these penalties you must try to pay off your payment before or on due date. You can either make online payment or give post dated check to avoid the consequences of late or non-payment. If you are a regular payer, then you must talk to your lender about your problem because some genuine lenders might waive or reduce the late fee of borrowers making regular payment.
Advice:
It is a good plan to create a budget to make timely payment to avoid unnecessary penalties.
In case you are facing some problem and need more time to take payment than talk to your lender about your problem to work pout things in a better manner.
Request your lender not to inform credit bureau regarding late payment as it can destroy your credit scores.
What Are The Late Or Non-Payment Penalties?
Late or non-payment penalty is a fee imposed by the lender when borrower don’t make the make on the due date. In most of the loans, borrowers have to make the payment within few weeks if they fail to do so then each passing day after due date add the penalty fee in their initial payment.
Late fee is charged by the lenders when the payment is received after few days of due date or the grace period. Usually lenders take the late fee with the payment so the coming payment will continue smoothly.
But it isn’t the case with non payment penalties. These penalties are charged when lender do not receive the payment at all. These charges are added on the next payment where borrower has to give huge amount. But if borrower couldn’t able to afford it than they it is distributed among all the coming payment which increases the monthly payment. It is advisable to note that lender can also increase the rate of interest if borrower misses payment after every short interval.
How Much Will It Cost You?
There is no set amount that is charged by the lenders as a penalty. It varies according to the lending policy of the lender. These penalties can also vary on the loan amount, the repayment term and the time taken after due date to make the payment. It is important to note that non payment of these penalties can increase a trouble for you in the form of court case in case of unsecured loans, repossession of your property in case of secured loans, etc.
How To Avoid These Penalties?
In order to avoid these penalties you must try to pay off your payment before or on due date. You can either make online payment or give post dated check to avoid the consequences of late or non-payment. If you are a regular payer, then you must talk to your lender about your problem because some genuine lenders might waive or reduce the late fee of borrowers making regular payment.
Advice:
It is a good plan to create a budget to make timely payment to avoid unnecessary penalties.
In case you are facing some problem and need more time to take payment than talk to your lender about your problem to work pout things in a better manner.
Request your lender not to inform credit bureau regarding late payment as it can destroy your credit scores.
