The impact of not paying a personal loan on time

A loan is a valuable credit tool to help you achieve your financial or personal goals. In banking terms, it is defined as: an amount of money that is lent, generally by a financial institution to a person through a signed agreement, with the obligation of said person to repay it with interest. Therefore, not paying on time and/or failing to comply with the payment obligation according to the signed agreement could negatively affect your financial health.

These effects include, but are not limited to, the following:

• Accrued interest and other charges – Interest will continue to accrue daily on the outstanding principal balance, causing your debt to increase. Likewise, you will begin to generate and accumulate late charges.
• Legal actions – Your creditor may take legal action to collect the debt, including lawsuits, the cost of which will increase the debt.
• Impact on credit history – Failure to pay is adverse information that can show up in your credit history.

If you are going through a situation that prevents you from meeting your payment commitments with Popular, we are at your service to offer guidance about our Assistance Programs¹.

• Payment Extension Program – Payment extensions allow you to postpone from one to three consecutive payments. This option is offered when you cannot make payments for a short time due to unforeseen situations. During a payment extension, you can pay the loan interest for the extension period and any accrued late fees at the time, or postpone the entire monthly payment, as well as any accrued late fees, before the extension is granted. If you choose to postpone the entire monthly payment, the loan will continue to accrue the interest agreed in the contract daily during the extension period. Therefore, the amount of interest to be paid will increase, as well as the amount of the last payment, which will be greater than the usual loan payment.
• Credit Rehabilitation Program² – The rehabilitation program allows you to refinance and consolidate your unsecured debts with Popular.

If you are experiencing any financial difficulties that prevent you from meeting your obligations with Popular, please call for Puerto Rico, the Individual Lending Services Division at 787.758.3368, for VI Region at 340.693.2752 (USVI) or 284.852.2642 (BVI), Monday through Friday from 8:00 a.m. to 5:00 p.m. for guidance on these alternatives. You can also visit the branch of your choice to get information.

¹ Assistance is subject to the customer complying with the terms and conditions set forth in each program and showing proof of the temporary situation that has affected their financial capacity.

² Subject to credit approval. Other restrictions apply.