What Does Defaulting on Debt Mean?
Defaulting on a debt simply means that the payments required on the debt have not been made. You may have heard of debt default in the context of government shutdowns when Congress must decide whether to raise the debt ceiling or decide how to handle the national debt. Everyday consumers also have to manage their individual debt. Most of us have some type of debt, whether it’s unsecured debt (like credit cards, personal loans, or student loans) or a type of secured loan (like your mortgage loan and auto loans). If you can’t make payments on your debt, you may need to default.
Different types of creditors look at defaulting differently. Some consider your debt in default after only one missed payment, while others wait until after you’ve missed multiple payments in a row before sending a debt default notice.
Defaulting has a negative impact on your credit score, and some loan services may harass you with their aggressive debt collection process. However, there is nothing to be embarrassed or ashamed about. We understand that sometimes you can’t meet all of your financial obligations — and we are here to help.
Seeking legal help with a debt attorney may help debt holders find assistance and make a plan to manage their defaulted debt. A qualified debt lawyer can help you decide which loan services and credit card companies to pay first if you can’t afford to pay back all of your debt at once. We will also explain how defaulting on secured and unsecured debt impacts your credit score, household wealth, and what period of time it will take to recover financially.
A defaulted loan or loan doesn’t have to hold you back forever. You can get back on your feet — even after what feels like the worst-case scenario. It might take a considerable period of time, but matter how many types of loans you have, there is always a way out.
The team at Tayne Law Group, P.C. is here for you. We tailor our solutions to your specific situation and can help you navigate the debt default process. Call us for a free consultation at 866-890-7337 or fill out our short contact form and we’ll get in touch!