Defaulting on a loan can be detrimental in more ways than one. Your chances of obtaining future loans from similar establishments will be limited This is the reason why one should try to avoid a loan default at all costs. It is However important to note that With Liquidity SA, you credit score is not affected is you default on your loan.
A loan default only happens when the borrower fails to honour his commitment. A loan does not end when you get the proceeds at a loan closing. Please note that as you receive the funds, you are expected to honor the mortgage term agreement that comes with it.
Choosing the right loan terms at the onset is key in knowing how to avoid defaulting on your loan. Liquidity SA consider themselves flexible in this sense and have a solution for each customer.
Apply only for the exact loan amount that you need. Always remember that your monthly payments are determined by your loan amount. As much as possible, negotiate for lower interest rates. Choose loan terms that involve interest and principal payments.
The ideal solution on how to avoid defaulting on your loan is to provide a contingency fund equivalent to about six (6) months’ worth of payments. This should give you enough buffer in case you are short of funds at a given time.
When you think you are not able to totally meet the loan terms, it is best to meet with your loan officer to discuss whether loan structuring is possible.
Loan defaults can be quite expensive – you not only risk losing your assets, but you may even be slapped with exorbitant legal fees.
Avoid defaulting on your loan with Liquidity SA, start looking for a fast, smart and private loan, no credit check today! We offer quick and accurate loan offer estimates. Visit liquiditysa.com and get a loan against your assets.