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Questions about unpaid bank loans/credit cards

sumwarsumwar Registered User regular
edited December 2011 in Help / Advice Forum
So I've never been in debt and I don't plan on going into it but I'm just curious. Lets say I get a loan from the bank, a personal bank loan. Not for a car or a house, just a personal loan. And I never pay it back ever. What happens? How far does the punishment go? Also, what if I max all or less than all but at least one credit card. And I never pay it back ever. What happens then and how far does the punishment go?

I just want to be educated on what happens if someone goes into debt and doesn't pay it back and doesn't go bankrupt.

sumwar on

Posts

  • SentrySentry Registered User regular
    Uh... your credit goes to shit, the debt goes to collections, depending on how much it is the collection agency can sue you at which point they can garnish your wages or put a lien against any vehicles, property, or anything else you own. This is not to mention the harassing phone calls and letters you get while they try and collect the debt.

    [SIGPIC][/SIGPIC]
    wrote:
    When I was a little kid, I always pretended I was the hero,' Skip said.
    'Fuck yeah, me too. What little kid ever pretended to be part of the lynch-mob?'
  • TychoCelchuuuTychoCelchuuu PIGEON Registered User regular
    edited December 2011
    And then you go to prison.

    TychoCelchuuu on
  • KillgrimageKillgrimage Registered User regular
    Yeah, all that stuff is tied to your credit score, which is how much a bank or creditor can trust you. The higher the score, the better. Lower scores indicate a lack of trust. So when people default on their loans, the score goes down. A low score means you can't get a mortgage, finance a car, or get another loan without massive amounts of interest and a hefty down payment (and even then, they may just turn you down completely). Depending on how bad you mess up, it can take several years to recover.

    And that is just the beginning. As Sentry said, your wages can be garnished. Also, if you bought stuff with your loan/credit card and you never pay it back, repo men can come and physically take what you bought from you so that the bank can recoup some of the loss.

  • sumwarsumwar Registered User regular
    Wow I didn't know they could go that far and start garnishing wages/jail time. Interesting.

  • JansonJanson Registered User regular
    Yes, working in payroll I can personally attest that your wages can be garnished, and believe me, that is not something you want to happen!

  • HenroidHenroid Mexican kicked from Immigration Thread Centrism is Racism :3Registered User regular
    I don't recommend letting it continue for the long term. Even when you start paying it back, they generally don't let up on the harassment front.

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