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What Does it Mean to Default on a Loan? What Happens When You Default?

What Does it Mean to Default on a Loan? What Happens When You Default? Get Personal Loan Rates Defaulting on a loan happens when repayments aren't made for a certain period of time. When a loan defaults, it is sent to a debt collection agency whose job is to contact the borrower and receive the unpaid funds. Defaulting will drastically reduce your credit score, impact your ability to receive future credit, and can lead to the seizure of personal property. If you can't make payments on time, it'