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Debt consolidation, home improvement

What Happens If I Can't Pay a Non Secured Loan?

Non payment of a non secured loan can result in a court appearance, County Court Judgment (CCJ), credit problems and, ultimately, the possibility of a ‘charging order’ and your home being at risk.

If you don’t tackle your debt problems and simply do not pay your non secured loan, the lender can pursue you through the courts for repayment, resulting in a County Court Judgment against your name. The lender may also apply for a ‘charging order’ which effectively secured the non secured loan against your home.

However – there are steps you can take to halt this process and deal with your debt.

If you are struggling to pay an unsecured loan, the first step you should take is to work out why. You may have a temporary cash flow problem or the reason may be more serious, such as unemployment.

Then, get in touch with your unsecured lender. Don’t bury your head in the sand and hope the problem goes away. Speak to your lender and see if they can help you put together an arrangement to repay the loan. They may allow you to pay a lower amount for a short period until you are back on your feet.

You can also seek professional debt management advice. There are many companies who will help you negotiate with your creditors and tackle your debt problems in a proactive way. Debt management companies will attempt to help you avoid court action by agreeing repayment plans with your non secured loan companies.

One other way you can tackle your non secured loan payments is by consolidating the debt into a secured homeowner loan. By taking the loan out over a longer period (at potentially a lower interest rate) you may be able to reduce your monthly outgoings. This makes your repayments more affordable, meaning you can pay what you owe on a monthly basis. Just remember that by doing this; your home will be at risk if you subsequently don’t keep up your loan repayments.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.

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