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Payday Loans | What are the consequences when you don’t pay the loan?

Financing a home in a correct, safe and affordable way? To do this, you first take out a mortgage loan. You pay a fixed or variable sum each month, and after the installment period, the house is yours.

Unfortunately, life does not always go as planned. For example, you may unexpectedly become sick or unemployed. In those cases, the monthly premiums risk becoming an intolerable burden. What if you can no longer repay your loan?

From fines to higher interest rate

From fines to higher interest rate

Before you take out your loan, it is a good idea to question the affordability of your monthly credit solutions. To combat financial problems preventively, the 33% rule applies anyway. This means that the total monthly loan burden may not exceed one-third of the family income. If you do not succeed in paying back your loan, the law provides for strict sanctions:

  • You will be fined.
  • The interest rate is increased depending on your contract.
  • You will be included in the database of the Central Bank for Credits to Individuals of the National Bank.

If those measures do not help, the lender can sell your house to recover the unpaid sum. That is only possible after a reconciliation attempt for the attachment judge. Only if it fails, will a purchase be made.

Do not repay the loan? Go for extra protection

Do not repay the loan? Go for extra protection

Losing your job, chronic illness, … Fate can strike relentlessly. Fortunately, you can incorporate the necessary protection measures with a debt balance insurance and additional guarantees. An overview:

Debt balance insurance: This is not mandatory (your credit institution can enforce it as a condition), but guarantees your surviving relative to a carefree future. If you die during the term of your mortgage loan, the insurer will take over the repayment of the credit partly or entirely from your dependents.

The additional ‘disability’ guarantee on top of your debt balance insurance


This guarantee ensures your standard of living when you are no longer able to carry out your job due to illness or accident.

The additional ‘Involuntary Unemployment’ guarantee on top of your debt balance insurance. This guarantee protects you from headaches when you suddenly run out of work. No unnecessary luxury in financially uncertain times.

Would you like more information? Feel free to contact us, we are ready for you!

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