What happens When You Default on a Loan

A default happens when a debtor is unwilling or unable to pay back a loan in which they are required to pay back. This can include anything from a mortgage, auto loan, credit card and even promissory notes.There are some debts that you may turn your back on and not see any consequence such as a small subscription to a magazine that you got locked into when you signed up for some service. On the other hand there are debts that if you turn your back on can lead you into a difficult financial situation. You may hear stories of people who have gotten away with debt for a couple of years but make no mistake, it will catch up to you.Loan debts can occur easily. Monthly payments on loans usually start off affordable but this can turn very quickly. There are so many reasons that can contribute...

Being In Debt and the Effect It Can Have On You

Debt when used constructively allows us to build a future. We are able to buy a home and cars, helping us to invest in our future. When you use debt irresponsibly by funding a lifestyle outside your means, there are long lasting consequences for you and your family.If you have ever been in debt, you are familiar with how it can destroy you financially, physically and mentally. Debt eats away at all your positive energy because all you can do is worry and stress about money. As the debt continues on, so does the interest only furthering your debt. It becomes impossible for you to make any payments and now you’re afraid to answer your phone, open your mail or even answer your door. Here are a couple ways debt can affect you:Setting an example – You may be sending a poor message to your family....

Will A Payday Loan Affect My Credit Score?

When a payday loan seems like your only option, you need to take a step back, consider your situation and determine how you got there. Do you need a payday loan because you have bad credit, is it because you have no credit or are you drowning in debt? Every individual’s situation is different.Why would I need a payday loan?Payday loans are used for a number of reasons. They are popular for people who need quick cash. When you’re in the position of needing money immediately, the advantages of a payday loan outweigh the disadvantages. Here are just a few reasons one would want to use a payday loan company:· You can get a payday loan regardless of your credit score as there is no credit check involved· You can apply in person, online or on the phone· The application...

Taking a Loan to Consolidate your Debt

If you’re struggling to keep up with your credit card debt, car loan debt or other consumer debt, then it’s time to consider your options. Debt consolidation has made the process easier and can help you secure simpler monthly payment plans along with lower interest rates.What is Debt Consolidation?Debt consolidation is used to manage your money. It’s a strategy in which a borrower takes out a loan to pay off all other loans. It’s done to secure a lower interest rate and for the convenience of one monthly payment over a longer period of time.Here are a couple great options for debt consolidation:Home Equity Loan – A home equity loan can be referred to as a second mortgage or borrowing against your home. This type of loan allows homeowners to obtain funds that are secured by your home’s current...