Article 125 of the Supreme People's Court's Opinions on Several Issues of Implementation stipulates: "Loans between citizens shall not be protected if the lender counts the interest into the principal to calculate compound interest". Obviously, it is illegal to calculate interest. When the borrower fails to repay the loan principal and interest on time, the small loan company may charge penalty interest or liquidated damages as agreed, but it cannot bear interest. If the small loan company generates interest in the future, the borrower may refuse to repay the generated interest.
The national protection benchmark interest rate is four times, and the national annual interest rate is 4.9%. If the interest rates of those two small loans are insanely high, congratulations, national laws will not protect the rights and interests of small loans, and small loans will ruin your credit information, not to mention how a person can live without credit.
First of all, each family will call to remind the repayment first, then collect it at home, and then they may resort to law and appeal.
Regarding the impact of non-repayment, seeing that you still have banks and credit cards, the first thing that affects you is your credit information. Your overdue information will be uploaded to the central bank for credit investigation, so your credit investigation report will be invalid, and then it is basically impossible to borrow money through formal financial institutions, and individuals can't expect to buy a house. After that, if you don't care about your credit report and can't appeal through the court, killing you is Lao Lai, and you will be included in the list of untrustworthy people. Lao Lai's famous branch will be counted as a solid by you, restricting consumption, flying, high-speed rail and so on. In addition, malicious overdraft of credit cards will violate relevant laws and will be sentenced after identification. According to different situations, the degree of punishment is different.
Besides affecting you, it will also affect your family, friends and your life circle, bringing unnecessary trouble. I believe you also know that people who break their promises will not have friends and will be looked down upon.
With the continuous construction and improvement of the national and social credit system, a faithless person may not see anything at present, but it will be magnified sooner or later in his later life.
Listen, if you want to pay it back, pay it back. If you can't afford it, negotiate. Don't ruin your big body and lower body in order to lose trust in the money.