A default happens when you have skipped one or several payments in a row on a loan or credit card. Since defaulting can cause your credit (and overall financial health) to quickly plummet, you want to do your best to avoid it.
CNBC Select breaks down what happens when you default on various types of debt and what you can do to prevent it from occurring.
What happens when you default on a loan
What leads to a loan default
If you’re a couple of days late paying your loan or credit card bill, you most likely won’t default just yet, thanks to a grace period many lenders and issuers extend to borrowers. The length of grace periods can vary depending on the loan type and lender and typically ranges from 30 days to 90 days.
Once the gra…
Read the full article at: https://www.cnbc.com/select/what-happens-when-i-default-on-a-loan/