Consumer Information

 There is no better feeling than to have the right amount of money needed to bail you out of a hard time. But most consumer(s) are unaware of the dangers that await the down the road. Here I will briefly explain some of the downfalls and some of the benefits of obtaining loans. First and foremost, whether you receive an installment loan from your bank, or you need a small payday loan, both can impact you tremendously in different ways, for instance.

Say you fell on hard times and all you needed was $500.00 to make it to payday and keep a major bill current... Well most lending institutions have no problem with lending out funds, however it usually comes with strict guidelines and stipulations set in place to protect the company involved. Most times when you sign your contract, you're signing a legal binding document meaning if you default on the loan the lending institution has the right to pursue you legally.

Some consumer(s) pay this information no mind and sign the contract with no intentions of paying the lender back, the lender most likely has covered their bases an placed some strict rules & regulations in place to protect them. The first way is interest, and yes we have seen in some cases a 400% interest rate spike when a consumer(s) defaults. Once your account is charged off the lender seeks a collection agency to try an recoup the funds, if unsuccessful the lender now seeks legal restitution for the entire amount owed.

So, what was a $500.00 loan has now become over $1000.00 and because of the legal binding contract the lender is now entitled to the total past due amount owed.

A judgement can then be placed on your credit file alerting other lenders you have a track record of not paying your loans on time. A judgment can stay on your credit profile for 7 to 10 years with derogatory remarks. This has a dramatic effect on a person looking for a house, apartment, a motor vehicle, employment or another loan. Most lenders will not want to do business with you and if they decide to, you could find yourself usually paying triple and, in some cases quadruple the amount of the actual worth.

But there are rewards to never falling in a defaulted status, the benefits consist of a great credit profile , so when lenders see that you borrow money and pay it back on time they are not reluctant to lend you more funds if needed. You also will get a better interest rate on those borrowed funds. The opposite way when you're in the delinquency. Maybe you're looking for your dream car our house well your track record will show that you're the type of person that takes great care of your responsibility's.

We here at Paul Hewitt & Assoc hope this information was very helpful in assisting you on your remarkable endeavors through life. We would like to thank you for your time and we hope we may be of some assistance to you either getting back on the right track or staying on the same positive path to success.