4 min read
Once you start missing payments on your loans, your account will move into arrears. When this happens, regaining control can be difficult. Potentially, your account may move deeper into arrears while you try to resolve the issue.
This can be stressful – and that is a huge understatement. Fortunately, a consolidation loan could help you get back on top of your finances. Here’s how you could be paying off your arrears within 24 hours:
When you miss a payment on a debt, this sum is referred to as arrears. When a lender communicates that your account is in arrears, they will either do this by specifying the amount owed or detailing the number of months you missed.
Most people miss the occasional loan payment and – assuming this is resolved quickly – your credit rating is unlikely to be harmed and you shouldn’t be penalised by your creditors.
However, if your account stays in arrears (usually by two months or more), you may start seeing repercussions.
If your account falls into arrears, your lender will usually inform you of the missed payment as well as what must be done to rectify the situation. If you don’t manage to repay your arrears, the next step will depend on the creditor and your situation.
However, generally speaking, the lender will attempt to reclaim what’s owed through debt collection. Although it’s also possible for the firm to initiate legal proceedings or petition to make you bankrupt.
Accounts falling into serious arrears can have a severe impact on your credit rating as well – and these breaches could remain on your credit report for six years from the date of the first missed payment. This may make it very difficult for you to obtain financial products in the future.
When you’re struggling to repay accounts – and you simply don’t have the money spare – the task can seem an impossible one. However, using a consolidation loan, you can get the funds needed to repay your lenders and close accounts – including those in arrears.
Once you start missing payments, your credit rating will probably start to deteriorate. When this occurs, you will find it harder and harder to obtain loans at favourable interest rates. Once you have a bad credit rating, it can sometimes feel like the financial world is closed to you.
At Consolidation Express, every credit score is considered – good or bad. Fundamentally, we know you’re trying to regain control of your finances and we’ll help you as best we can to achieve that. To find out more information regarding how we can support people with poor credit ratings, click the button below.Debt Consolidation for Bad Credit
Click the button below and you’ll be taken to our short application form – which can be completed in just a few minutes. It will help us determine whether you qualify for a debt consolidation loan. If approved, you could have the money within just a few hours. Potentially, you could have repaid your arrears by the end of the day:Do I Qualify?