When we take out a loan or credit with a financial institution, we must be sure that we can afford the monthly installment payments. Otherwise, we can fall into delays that add up to default interest to our loan or credit.
Default interest, everything you need to know
Default interest is a headache for borrowers who have made a financial commitment. And it is that they will not only have to pay the interests and commissions set with the bank, but also a penalty for late payments. Here we tell you more about the default interest and how they apply in Peru.
What are default interest?
If your loan or credit payment deadline has come and you do not pay the fee, the bank will begin to charge you a delinquent interest. Unlike simple interest, default interest is charged on the amount of the installment that had to be paid. That is, if, for example, you had a total debt of S / 2,000 and had to pay a monthly fee of S / 200. The default interest will be charged on S / 200 soles and not on S / 2,000.
How much default interest does my bank charge me?
The default interest is set in the contract you signed with your bank, when applying for your loan or line of credit. Therefore, we can say that the default interest varies according to each financial institution. To know what is the default interest that you have to pay, the following is taken into account:
- The percentage of default interest charged by your financial institution.
- The number of days that you have been late in paying your responsibilities.
If we follow the previous example, the default interest of our bank is 5% and we have been 20 days late in paying, what we must do is multiply the monthly payment (S / 200) by the default interest (5%) which would give as a result S / 15. This amount must be divided by 30 days (the duration of a billing cycle) and then multiplied by the number of days late (20 days). So in the end we should pay a default interest of S / 10.
Having a default interest affects your credit history, so it would be advisable to find a way to regulate your situation before it becomes part of the Infocorp blacklist.
There are different options that you can choose to settle your debt, for example, we recommend our program My board through which we group people who, like you, seek to settle their overdue debts; that way we can negotiate the settlement of your debt, collectively while you start saving in a protected account, for less than a year, until you reach the individual fund you need to pay off your debt. Contact us for more information!