Due to the painstaking rise cost of goods, and other present factors, more Filipinos are trying to avail consumer loans making them susceptible to a debt trap or what we refer to as loan delinquency.
In fact, according to Bangko Sentral ng Pilipinas (BSP), the loan delinquency rate in the Philippines significantly increased to 4.43% in April 2024 from 4.30% the previous month.
With the data presented, it might be the best idea to learn what delinquent loans mean, and its repercussions, as such, we are here to give you 5 tips to avoid loan delinquency.
Loan delinquency is also called loan default in the Philippines. This pertains to a borrower’s inability to make scheduled loan payments by the set deadline.
In a more comprehensive explanation, it is the nonpayment of, or payment of an amount less than, the minimum amount due or minimum payment required for at least three billing cycles.
What happens after loan delinquency?
Inevitable circumstances after you take out a loan may occur, whether you were involved in financial emergency or income loss, among others, you must know the repercussions that await this course of action.
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