What happens if I cant afford to pay back my bounce back loan?

If you deposit a check on Friday when it clears, you will be responsible for the payment of the loan.

Guarantor: A person who co-signs for a loan or credit card with the primary applicant, agreeing to be responsible for repayment of the loan or debt if the applicant is unable to repay.

Property and Assets: Anything of economic value that is owned by a person or corporation and can be converted to cash. For example, cash, securities, accounts receivable, inventory of office equipment, house, car, and other property. On the balance sheet, assets equal the sum of liabilities, common stock, preferred stock, and accrued income.

Finance charges: Finance charges are the cost of consumer credit in monetary terms. They include interest charges and fees paid by the consumer to the creditor in exchange for obtaining the loan.

Certificate of Deposit: A certificate from a bank stating that the named person has on deposit with the institution a specified sum, usually for a specified term, at a fixed rate of interest.

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Sometimes, after making a purchase, the current account balance does not match the total of debits and credits, especially when the transaction is made with the card. The reason is that the bank may have withheld the account balance for a certain period of time. We explain what a bank hold is, why it happens and whether it is possible to use the retained balance for other transactions.

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In any case, the balance withheld is always a difference between the actual balance and the available balance. The former is what you see in your bank account and the latter is what you can use for practical purposes.

Withholdings by the bank usually last for a few days. For example, after a trip or hotel stay. The same happens when paying a road toll, in which the operation becomes effective in a few days.

In principle, the retained balance remains outside your management. Basically there are two options: either the charge becomes effective or the receiving entity refunds you the amount. Of course, there are exceptions such as unrecognized charges or fraudulent practices.

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The check or cheque is a means of payment that has been widely used in the past and, although nowadays it is hardly used anymore, there is still the possibility of being paid with a check that must be honored by the bank in order for us to cash it.

Once we have the check in our possession it is very important to pass it to collection within the date that appears in it or, at the most, in the following fifteen days since, as we will see, the check is an executive document and if it has not been tried to be cashed in its date it is damaged and stops being executive.

This step to collection can be done by going to the bank branch and cashing it at the teller window or by depositing it in our own bank account so that it is cashed by compensation and the money is deposited in our account.

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Very well: we already have the check that our client has given us and the date for its collection has arrived, we go to the bank and it returns it to us because it does not have sufficient funds to pay it in the account; what do we do?

We should contact the issuer of the check and inform him/her that we have not been able to cash it, asking him/her what the cause was and looking for an alternative means of payment. It is possible that another charge or a commission or another type of unexpected outflow of money in your account has happened and you have not controlled it, in this case it is normal that we can cash the check immediately.

Withholding of bank deposits

Sometimes, when you are sure of the amount you have in your debit or credit account, it turns out that the card simply does not go through when you try to make a payment, you try again, and nothing. What is happening?

A balance hold is a preventive action that your bank issues in order to be able to analyze the movement you made or that someone else made in your accounts. If you have a certain amount of balance withheld, it means that you will not be able to use that part of your credit line or your money in your debit or payroll account until the bank has it back or the situation is clarified.

When the supplier from whom you have purchased is late in making the payment valid, your bank retains it and you will not be able to make use of the credit line corresponding to the payment until the supplier rejects the payment or the bank authorizes it.

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You should know in the first instance that the money is not lost, it is simply in a clarification process, so you should call your bank and ask what exactly is the process your money is going through.

What happens if I cant afford to pay back my bounce back loan?
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