Are you planning to go abroad for your post graduation? Have you again applied for your student loans? Have you received any call from your money lender at the airport stating that you have become a defaulter of your previous loan? You must be worried and have started panicking. Isn’t it? Defaulted student loan and other types of loans lead to grave and severe consequences. When you default of your loans the debt collector takes stern measures, as a result of which, it adds a negative impact on your credit score.
Consequences of becoming a defaulter of loans
When you fail to pay off your past loans and you have been declared to have attained the status of default position, the first thing that you face is the repeated number of calls. At first the debt collector starts ringing you on your mobile or land phone and keeps harassing you. You might receive calls at any time that could be at the middle of the night too. The money lender keeps harassing you in a rude manner. Gradually, you fall under a grave problem. Your credit card stops functioning and you cannot make any payment anywhere. You cannot even withdraw money using your ATM card.
Defaulted loans also lead to a blemish on your credit score. If you have a dream to purchase a brand new car, it will get shattered as the debt collector will make such preparations that you fail to buy a car. You can never own a property too. Also, you are hindered from owning a job. You also fall prey to legal actions as the money lender can sue you in court.
Solutions or how to pay off your loans
Defaulted loan or any kind of debts can be tackled by the following ways.
Get hold of your lender – Don’t get panic stricken as you should contact your money lender. Talk to him and ask him whether he can defer your payment. Sometimes the debt collector gives you permission in delaying your payment date and can also reduce your monthly installment. Thus you can save yourself from abusive debt collector.
Check your loan status– You should check what kind of loan you have applied for. There are different loan rehabilitation programs and your loan lender will tell you what kind of program is suitable for you depending on the status of your loan.
Get your loans consolidated – If you have taken multiple loans then all these will get amalgamated. Then you need to make a single payment at a particular point of time and thus pay off your loans after your financial situation gets stronger.
By opting one of these options, you can get out of your loan default status and make your career trouble free.
About the Author: The author, Jonathan James, in this article gives the consequences of defaulting loans and how you can pay off your past debts and come out of default status. You should consult your money lender and save yourself from abusive debt collector.