Ontario Personal Loan Lawyers
Californians get personal loans for a variety of reasons. They may need to renovate their home, consolidate debt, pay medical bills, or pay for college expenses. Whatever the reason, personal loans come in handy when you’re short on cash and need to pay down a bunch of expenses quickly.
However, loans are not free. They need to be paid back. If you fail to make timely payments, you will face various issues. Your account could go into default, which means you will likely incur fees and a lower credit score. If you stop repaying your loan for several months, your account could go into collections. You could even be sued by the lender.
In these cases, you may be scared. What will happen if you can’t afford to pay your personal loan? The Ontario personal loan lawyers from Wadhwani & Shanfeld can assess your situation and help you understand your options.
How Late is Your Payment?
The consequences you will face for being late on a personal loan payment will depend on factors such as how late your payment is. Is it a few days late? A few weeks? A few months? Here’s what you can expect:
- Up to 30 days late. Lenders typically don’t report missed personal loan payments until one billing cycle (30 days or so) has passed. So if you’ve missed a payment by a few days, don’t despair. You may have to pay a late fee, but you won’t damage your credit score.
- 30 to 60 days late. After missing your due date by 30 days, your account is considered delinquent. That missed payment will likely be reported to credit bureaus and could remain on your credit report for up to seven years.
- 60 to 90 days late. The lender will try to contact you so you can make the payments. Any payments you miss will appear on your credit report.
- 90 to 120 days late. After about three months of missed payments, your account goes to default status. This means that you have failed to repay the loan according to the terms of your agreement.
- 120+ days late. At this point, your payment is four months later. Lenders will charge off your account, meaning that they will no longer contact you for payment. The charge-off will appear on your credit report and the lender will likely sell the debt to a collection agency. It is now considered a separate account and will show up on your credit report under “Collections.” The collection agency might file a lawsuit against you, garnish your wages, or put a lien on your home to get you to repay what you owe.
Contact Wadhwani & Shanfeld Today
It’s easy to spend the full amount of a personal loan quickly. When it’s hard to pay back your loan, don’t just give up. See how you can make things work.
The team at Wadhwani & Shanfeld can help you understand your options, like discussing your situation with a lender. Call (800) 996-9932 to schedule a consultation with our knowledgeable Ontario personal loans lawyers.