If I am not paying the minimum amount due but I am paying close to it every month can my loan still go into default or do you have to actually miss several months of payments before it goes into default status?
2007-12-14 02:04:58 · 8 answers · asked by CuriousGeorgine 1 in Business & Finance ➔ Credit
You don't understand, if you make less then the minimum payment you have missed a payment and are in default under the terms and conditions of your loan.
They can and will turn you over to collections.
2007-12-14 02:16:07 · answer #1 · answered by rockman1091953 6 · 3⤊ 1⤋
You are technically in default of a loan if you do not meet any of the terms. The terms include on-time payments and making the minimums. Now the bank has some discretion on how they can handle that. They may do nothing or they may call the loan. You should DEFINITELY make the monthly minimum payments from here on in. I would actually call the bank and find out how much it would take to get back on schedule. With the credit crunch on Wall Street, banks are very adverse to risk right now. if they perceive you as a risk, they may take action faster than usual.
2007-12-14 02:12:11 · answer #2 · answered by Jay P 7 · 4⤊ 0⤋
Yes, it can. You signed a contract to pay that minimum amount. One penny less and the bank can put you in default if they want to. Also, if you short them, say, 20 dollars a month for six months, then oops, you're 120 dollars in default plus interest. It starts to add up. Be careful and good luck.
2007-12-14 02:09:00 · answer #3 · answered by Mick 6 · 0⤊ 0⤋
I was in the Student Loan industry for over ten years. I can tell you that if you fail to make just one payment on time, your loan is technicaly in default. They can turn it over to collections at any time.
Edit: the people who think you can pay 2.00 a month were my best customers. That is a wives tale. Just try to tell your bank that you will not be paying but 2.00 on your car loan or house payment and see how fast they repo.
2007-12-14 02:08:56 · answer #4 · answered by Anonymous · 3⤊ 0⤋
That depends on who the loan is with. But in my personal experience if you call the company and ask them if they can lower the monthly payment to what you have been making, they will do it. They are usually very willing to work with people who are attempting to make their payments.
Or you could consolidate and see if that gets you a lower payment.
Hope that helps,
Alicia
2007-12-17 03:07:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Hello! I Got This For You. As Always, It's Always Better That You Get The Info Firsthand. So Better Check It Out Yourself, Im sure You'll Discover Something...
2007-12-14 05:50:16 · answer #6 · answered by Jacob A 1 · 0⤊ 0⤋
Yo would have to miss several months totally.
2007-12-14 02:07:38 · answer #7 · answered by clbowman06 4 · 0⤊ 3⤋
If you are paying something monthly it can be 2.00 and they won't go in default
2007-12-14 02:08:39 · answer #8 · answered by Brad R 5 · 0⤊ 5⤋