What happens if you ignore loan payments?

Okay, so you’re wondering what happens if you just… ignore those loan payments, huh? Trust me, I get it. Sometimes staring at those bills is the last thing you want to do. But ignoring them? That’s like ignoring a flashing warning light on your car – it’s definitely going to end badly.

Seriously. Here’s the deal:

• Damaged credit? Oh, it’s worse than just “damaged.” Think cratered. That default goes straight to the credit bureaus. It’s like a big, red flag waving around, screaming, “Don’t lend this person money!” And it’s not just about future loans or credit cards either. I heard my cousin was turned down for an apartment because of a messed-up credit score! Can you believe that? Seriously affects your life.

• Asset seizure… which basically means they can take your stuff! This is where it gets real. We’re talking about things you actually need, like your car. How are you supposed to get to work without a car? Or, even worse, your house! Can you imagine? It gives me shivers just thinking about it. Lenders have the right to take this as a form of reimbursement.

• Lawsuits? Ugh, the legal system. Nobody wants to deal with that, right? But yeah, the lender can actually sue you for the remaining debt. Imagine the stress, the legal fees… it’s a total nightmare.

• And the long-term consequences? I wish I could tell you it’s a quick fix, but rebuilding credit? It takes years. Years! My best friend had some trouble with student loans a while back. It took her almost seven years to get her credit back to a decent place. Is it worth it? I don’t think so.

So, yeah, ignoring those loan payments? Not a good plan. Not a good plan at all. Better to face the music, explore hardship programs, and work something out with your lender. Trust me, future you will thank you for it!