Not paying your debts on time is never a good idea. It can cause you astronomical loss even if you decide not to pay them at all. Here’s what happens if you don’t pay your debts in due time.
If you don’t pay your bank loan, credit card, or other debt, the lender may decide to send your file to a collection agency or law firm for legal enforcement. If you continue to disagree with paying what you owe, Default Judgment may be issued against you by the lender. This will affect your credit record and leave you vulnerable to judgment enforcements, such as lawsuits, garnishments, bank account levies, and writs of seizure and sale.
The bank reports delinquent payments to the credit bureaus, which, in turn, lower your credit score drastically. According to some experts, your credit score can drop as much as 100 points if you fail to pay your debts in the initial six months. A low score can impact your ability to buy a car, get housing, and, in some cases, gain employment as well.
Getting your credit fixed is crucial than ever before. You need good credit in all areas of your life. Whether you want to buy a home, get a new vehicle, apply for a credit card, or personal loan, everything depends on your credit profile.