What is the worst that could happen to me if i suddenly just decided to stop paying the payments on an unsecured personal loan of about £4000?
2007-03-23 00:31:14 · 8 answers · asked by allan.cooke 2 in Business & Finance ➔ Personal Finance
By the way I don't actually own anything! Still live at home
2007-03-23 00:34:55 · update #1
Take you to court, send in the bailiffs and destroy your credit rating. They could also try to make you bankrupt.
Then they could ask the court to make an attachment to your earnings and take instalments out of your wages. They could still make you bankrupt.
2007-03-23 00:34:00 · answer #1 · answered by Anonymous · 1⤊ 0⤋
1
2016-09-28 13:01:56 · answer #2 · answered by ? 3 · 0⤊ 0⤋
There are 2 types of personal loans – secured personal loans and unsecured personal loans. Secured personal loans require you to pledge any of your assets like you house to the lender as collateral. Many people choose this type of loan due to many benefits like lower interest rates, long repayment time and easy terms and conditions. But your asset is under threat if you cannot make timely payments. Your asset can be taken over by the lender and thus you lose the possession of it.
Unsecured personal loans do not have any risk since you are not pledging any asset. But you pay more interest due to higher interest rate, short repayment time and rigid terms and conditions. If you are a tenant or homeowner who does not want to take the risk with your property, choose this type of loan.
2007-03-23 00:56:20 · answer #3 · answered by hendy h 2 · 0⤊ 0⤋
You are not going to get an unsecured loan with bad credit. It is not going to happen. If anyone makes you a loan they are going to require some sort of collateral. If you cannot find the collateral they are not going to make you a loan.
2016-03-29 00:48:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Depends who the loan is with as to how aggressive their recovery procedures are, but they would very probably send bailiffs to wherever you live and take a load of your stuff to the value of whatever you owe, and this could happen suprisingly quickly after you default. They can't take anything which would be worth substantially more than your debt, and they can't take anything which is not owned by you (so that would include anything owned by your parents and anything you still had finance on elsewhere).
2007-03-23 00:40:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Bailiffs-Loss of property/personal possessions or your parents possessions.
Court-CCJ
Loss of good credit record- No mortgage, can't rent property, no bank will lend to you, no finance for new car- basically you will be stuffed and it will take you the best part of ten years to clear it all up.
Just pay it, if you are having trouble work out an agreement with the loan company, they will be more than happy to help if they can see you are making an effort to pay at least something.
2007-03-23 00:37:20 · answer #6 · answered by Smoochy Poochy 6 · 2⤊ 0⤋
i just stopped paying mine. it was for £2.129 then i went to citizens advise because they sold the debt on the a collection agency. CAB wrote to all my creditors with an offer of £1 per month and they've accepted. When ive won the lottery i will pay em everything i owe em.
2007-03-23 01:14:37 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Your status of not owning anything would continue...indefinetly! You would be unable to obtain credit until that loan was rectified. Is this really what you want to do? Isn't it the right thing to do to pay your debts?
2007-03-23 00:40:53 · answer #8 · answered by Lone Papa 2 · 0⤊ 0⤋
they go through the proper channels but yes they wil take you to court and the baliffs will take your stuff to the amount you owe and you still have to pay the rest depending on the judge you may gt the monthly payment reducded so its affordable 4 you to pay take out the stuff you dont want to lose hide it at a mates house
2007-03-23 00:39:34 · answer #9 · answered by Anonymous · 0⤊ 0⤋