Risks of becoming a "defaulter"

5 days
30 days
Loan term
30 days
Loan information
Risks of becoming a "defaulter"

It is not necessary for us to provide you with economic data and figures on the current financial situation in Spain, because we assume that you will already be a little tired of listening and reading what the different specialists in the field have to say about it in the media. However, nobody better than the citizens on the street, who must manage their modest domestic economy from month to month, despite all the unforeseen events that may happen, they know the true functioning of the economy of our country.

It is not at all easy for middle and lower-middle class families to survive on average soil when they have to pay a mortgage (possibly for more than 30 years), all household expenses, food, education of the children, family health and leisure. Making two salaries at home work for a family of four is a challenge that not a few have to deal with every month. However, until the last possible effort is always advisable before incurring a default, even resorting to a quick credit. The risk of becoming a defaulter lies in the fact that it is not something specific, but can mark you for the rest of your life.

According to the surveys, the first thing Spanish households stop paying is the community of neighbors. On the contrary, although mortgage delinquencies reached its maximum rate in 2014, it is not usual for Spanish citizens to default on their mortgage payments except for causes of extreme necessity. The simple fact of not paying the community of neighbors, which to many owners seems silly, can end in their corresponding complaint with all that this implies.

Before approving the contracting of a service (electricity, gas, telephone line, etc.) or granting a loan, any company and / or bank will consult one or the two most well-known lists of defaulters: credit association and RAI. If you have stopped paying several receipts for any service, especially those provided by supply companies, or several installments of your mortgage / loan, apart from receiving the corresponding complaint and payment requirement (debt recovery procedures may vary according to the company or institution), you will automatically join these lists of defaulters. However, if you finally pay off your debts, you will not be immediately removed from these lists. Disappearing from the credit association and the RAI can take years and become quite a headache. Staying on any of these lists of defaulters, it will be difficult for you to access private loans and contract any type of supply in your name.

All of these are reasons enough to think twice about defaulting on your debts. If for any circumstance of life it is impossible for you to face certain debts at a certain time, resorting to fast loans can be a momentary way out of the problem that will allow you to pay your debts and not fall on the list of defaulters, with the consequences that this implies. Quick credits are easy to get, with few paperwork and at reasonable prices. Do not rule out this refinancing option and consult an advisor.

about the author

Maria Solis Burley

Credit consultant in Spain. Financial Analyst at Crédito Victoria.
LAST UPDATED: September 29, 2016