Legal analysis: Consequence 1: Calculate penalty interest

There is no free lunch in the world, and financial institutions are willing to lend you money and will certainly charge you interest.

Penalty interest is one of the most intuitive consequences in loans overdue. It is directly linked to your money. Why do you say that? In fact, many institutions have very strict regulations on overdue penalty interest.

Consequence 2: Overdue records are included in the credit report

Then you may not see other hazards in loans overdue, such as one of the very devastating consequences-overdue records are included in the credit report.

Even if you pay off your debts, your personal credit report will still show the fact that you are in loans overdue. The next time you want to apply for a credit card or apply for a loan again, it will be affected. If you are overdue for too many times, all kinds of loan financial services will basically be out of your reach.

Consequence III: You will be collected, prosecuted or even blacklisted for those who have broken your trust.

Another serious consequence of loans overdue is that you will be collected. Text messages and telephone calls are routine means. Once these do not work, the bank will sort out your loan contract, transfer it to the regulatory department and start to prosecute you. If you don't repay the loan, you will go to court. As long as the evidence is conclusive and you want to default, the court will decide to enforce it. Even your only house may be auctioned.

That's not counting. People who owe money are not paid back to the blacklist of people who have broken their promises. They can't sit on planes or high-speed trains, their bank cards and Alipay accounts are frozen, and their personal property is auctioned. Life is almost impossible.

Legal basis: Article 577 of the Criminal Law of the People's Republic of China

If a party fails to perform its contractual obligations or fails to perform the contractual obligations in conformity with the agreement, it shall bear the liabilities for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

article 578 if one party expressly indicates or indicates by its own behavior that it will not perform its contractual obligations, the other party may request it to bear the liability for breach of contract before the expiration of the performance period.

article 579 if one party fails to pay the price, remuneration, rent or interest, or fails to perform other monetary obligations, the other party may demand payment.

Article 58 If one party fails to perform the non-monetary debt or the performance of the non-monetary debt is not in conformity with the agreement, the other party may request performance, except in any of the following circumstances:

(1) it cannot be performed legally or in fact;

(2) The subject matter of the debt is not suitable for compulsory performance or the performance cost is too high;

(3) the creditor fails to request performance within a reasonable period of time.

in case of one of the exceptions specified in the preceding paragraph, the purpose of the contract cannot be achieved, the people's court or arbitration institution may terminate the contractual rights and obligations at the request of the parties, but it will not affect the liability for breach of contract.

article 581 if one party fails to perform the debt or the performance is not in conformity with the contract, and the performance cannot be enforced according to the nature of the debt, the other party may request it to bear the expenses for performance by a third party.

Article 582 Where the performance is not in conformity with the contract, it shall be liable for breach of contract in accordance with the contract agreed by the parties. If the liability for breach of contract is not stipulated or clearly stipulated and cannot be determined according to the provisions of Article 51 of this Law, the injured party may reasonably choose to ask the other party to bear the liability for breach of contract such as repair, rework, replacement, return, reduction of price or remuneration according to the nature of the subject matter and the size of the loss.

article 583 if one party fails to perform its contractual obligations or the performance of the contractual obligations is not in conformity with the contract, if the other party has other losses after performing its obligations or taking remedial measures, it shall compensate for the losses.

Article 584 Where one party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the contract, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.