Why do people default on loan repayment

Niyi Briggs

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• Jan 10, 2023

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I see some people take loans and find it very difficult to payback the loan. Why do people default on loan repayment. I think apart from health issues that can deplete finances,no one should default on loan repayment.

What are the causes?

 

Edulady

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• Jan 10, 2023

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Loan payment need someone who's consistent and determined. Without these two you will end up skipping out on payments. Other times you will find that a job ends abruptly and you have no other means to pay off the loan

 

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Johnson2468

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Some reasons are financial hardship, job loss, unexpected expenses, and changes in interest rates.

 

nomad

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• Jan 11, 2023

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People default on loan repayment because they use the money for non-productive things and are unable to generate profits from the loan money.

 

flower

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• Feb 4, 2023

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It is important to note that anyone that default loan payment would have a bad credit rating and people. Majority of the people who default loans are financially incapacitated.

 

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Springtime

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• Feb 4, 2023

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Other than health issues, some people may not be able to repay loan due to job loss or get addicted to certain bad habits such as gambling.

 

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Bisolami

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• Feb 5, 2023

• #7

Niyi Briggs said:

I see some people take loans and find it very difficult to payback the loan. Why do people default on loan repayment. I think apart from health issues that can deplete finances,no one should default on loan repayment.

What are the causes?

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Some of them we are not able to get to the money they have planned to get and some people are scammers that will never want to pay you back

 

eldavis

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• Mar 2, 2023

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There are various reasons though, in most cases it could be that what they where hoping to pay back from did not come or the business did not go as planned.