Warning: Late repayment can cause you serious money problems. For help go to moneyadviceservice.org.uk
If you are struggling to pay back your loan…..
The first thing to do is….NOT WORRY !
N.Bolton’s Finance can help you! In the first instance, if you realise that you are unable to afford your loan repayments then call us as soon as you can on 020 8666 0270 ! We will be happy to talk you through some options.
Remember:
If you don’t pay back your loan, you may:
- Be charged a fee and interest on any missed payments
- Damage your future credit record
- Be issued with a county court judgement (CCJ)
- Have to declare yourself bankrupt
Does it damage your credit record?
Yes, because lenders are obligated to report late or missed payments.
If you miss several payments then the lender may add a notice to your credit report, they include:
- Default notices
- CCJs
- Individual Voluntary Arrangements (IVAs)
- Bankruptcy
How much damage depends on how long it takes you to get back on track because your credit record shows your repayment history for all your borrowing.
What is a default notice?
It is a letter from your lender that is usually sent after you have missed between three and six payments.
It sets out the details of your loan, what terms you have broken and what you need to do next.
A default notice is also added to your credit report, which can make it harder to borrow money in the future.
What is a CCJ?
It is a type of court order that can be filed against you if you owe money.
Unless you pay back your CCJ within 30 days it will be added to your credit report and stay there for six years.
Having a CCJ causes significant damage to your credit record and could make it much more expensive or stop you from borrowing money in the future.
CCJs only apply in England, Wales and Northern Ireland. In Scotland the courts use a process called enforcing a debt by due diligence.
