What happens if you don’t pay debt consolidation loans?

Quick And Easy Personal
Loans Up To $2500

Stopping payments for any loan can have a range of negative consequences. First, you would start to accrue late fees and charges. Then after a certain amount of time your loan will go into default. This means you failed to uphold your end of the loan agreement, and your loan will be sent to a collection agency. This can negatively impact your credit score and borrowing options for years to come. 

It’s never a good idea to miss loan payments or fail to pay altogether. This is why it’s always important to be 100% you can afford the payments before taking out any type of loan. Failing to pay a loan can lead to a lower credit score, collections, and make it more difficult to get other loans in the future. 

But how will missed payments affect a consolidation loan specifically? Well, debt consolidation loans are generally larger than some other personal loan options. This is because they’re used to pay off several smaller loans, which means they need to be big enough to cover these debts. Other than that, it’s the same as missing payment with any other loan. Your loan will go into default

Defaulting on a loan means that you have officially breached the personal loan agreement or contract. When this happens the lender usually sends your debt to a collection agency. At that point, you owe the agency and not the lender. This also means that your credit report will not show that you have a loan default. This may stay on your report for years to come, on average for seven years.1

If you currently have a loan in collections, you may be able to negotiate with them. By talking to 

them and offering to pay off a fraction of the amount, they may consider the entire debt settled. It’s important to keep in touch with them, and at least try to make payments on the debt. You want to avoid additional fees. 

Not paying your loans on time is a quick way to make your financial situation much more difficult. Always thoroughly review your loan contract and repayment terms before signing for a loan to avoid situations like this.

References: 

How Long Does Information Stay on my Equifax Credit Report | Equifax

General Questions
How do you calculate interest rate on a personal loan
Which bank will provide personal loan easily
Which type of loan can be used for debt consolidation
Can I borrow money for a down payment?
What is a good apr rate for a personal loan
What is the easiest type of loan to get with bad credit?
How do you calculate apr on a loan
How can I get loans for 500 credit score
What is the easiest bank to get a personal loan from
What is a personal loan used for
Which bank has the lowest interest rate for personal loan
What is a benefit of obtaining a personal loan
Who offers payday loans in ohio
What states prohibit payday loans
Does colorado do payday loans
Can uber drivers get payday loans
Does money tree do payday loans
In what states are payday loans illegal
Does sc do payday loans
Does ohio still have payday loans
Does oklahoma do payday loans
Does tennessee do payday loans
Does walmart offer payday loans
Does georgia have payday loans
How do you guarantee a personal loan
Is there a way to get a loan without a bank account
What happens if you don’t pay back a personal loan
How does an amortizing loan work
How does co-signing a loan work
How to structure a loan for six months fixed interest rate
What is the difference between a fixed-rate loan and a credit line loan
How can a loan have a fixed apr but variable interest rate
How do I know if my loan is fixed-rate
What happens if you don’t pay debt consolidation loans?
What is an unsecured debt consolidation loan
How do co-signed loans work
How long does it take to get a payday loan

Quick And Easy Personal Loans Up To $2500*