Most students find themselves in a situation where they need to borrow money to pay for college. They get financial aid from the schools themselves or from federal institutions. There are others who choose to take out private loans from companies like rapidloans.com.au.
With so many borrowing options, they get the assistance they need to go to college. They graduate, then eventually find their dream job. However, there are some who choose to ignore their responsibility and don’t pay it off.
Low Credit Score
If you miss a loan payment for at least 30 days, your lender will report it to the credit bureaus and your credit score will go down. Having a low credit score will make it difficult for you to get more loans in the future. It usually takes seven years for a late payment to clear off your record.
Aggressive Collection Actions
If you stop paying, the bank will eventually give up contacting you and sending you mail. They will turn the task over to a collection agency. According to accc.gov.au, collection agencies are companies that collect the debt as a part of their business. The collection agency will be even more forceful in trying to get you to pay.
When you still ignore the collection agency’s actions, they will eventually sue you in court. If they get a judge’s favour, the court will assist them in acquiring the debt. The court may decide to contact your employer and divert your salary in order to pay the amount.
They may also get the money from your bank account or sell your property even if you didn’t provide it as collateral. If they require you to show up in court and you don’t, there’s a possibility that you can get arrested.
The lenders freely give you their trust when they lend you their cash. The least you can do is pay them off. After all, dire consequences await you if you don’t.Tags: Loan, Student Loan Consequences, Student Loans