• What Is Considered A Default?

    What Is Considered A Default?

    May 8, 2009

    A defualt is when you have fall through in paying your obligations.  So where is the line drawn be your accounts between what is a late payment and what is a default?

    If you have not paid an account in 90 days it most always considered in defualt.  If you then pay this account it will be a 90 day late payment.  What is the difference defualt to the account is when they think you will not be paying back the debt.  If you then get current it is a severe late payment.

    Also, the longer it takes to get current after 90 days the larger rick you run of being sent to collections.  Now, late payments are one of the worse thing you could do for your credit score, 90 day late payments and old are the most severe cases of this.  The affect of one 90 day late payment could be devastating to your score.

    You should really consider your financial health if you are even paying this late.  Without a doubt your creditors have been trying to contact you either by phone or mail.  You cannot not calm ignorance.  There simply is a reason why you are paying late.  Once you have come to terms with your problem you must do whatever you can to get current.  Sell things on ebay or have a garage sale.  You need to get some cash and pay this debt.

    Next, you to develop a plan to ensure you are budgeting and paying on time.  If you are in over your head with debt and you are not making enough to pay each month, you should seek some outside help, get a second job, or sell everything that is not bolted down to get yourself where you can pay down your debt.  Also, you can reach out to your creditors regarding your situation.  They might not be nice about it, but what choice do they really have.  If you defualt they will be out their revenue and this alone should make them listen.

    Was This Post Helpful?

    Help other people find. Vote you will be spreading the good will

User Comments

  1. Very useful post.

    Very insightful into what is actually considered as a default.

    Many thanks!

    May 12, 2009 Comment by Coach Hire Birmingham@
  2. financial sometimes become so confusing :)
    thanks for the info,

    May 17, 2009 Comment by SAC@
  3. Default is a bad situation. It is much better to avoid it, than fix it afterwards.

    May 21, 2009 Comment by Snow Vacation@
  4. nice information .thanks

    denbagus’s last blog post..Wijng.com – Easy to Learn English

    June 3, 2009 Comment by denbagus@
  5. This is a great post. Thanks for the information, I am a lot cleaer now.

    June 3, 2009 Comment by Phone Franchise@
  6. Very useful post. Sometimes finance can be very confusing indeed.

    June 4, 2009 Comment by leeds solicitors@
  7. Can we refinance our debt with other company before 90 days so its not default?

    June 7, 2009 Comment by wang@Currency Convertor@
  8. You can normally get a default deferred by your creditor by contacting them to discuss any problems.

    June 8, 2009 Comment by Birmingham Accountants@
  9. Great information.

    June 22, 2009 Comment by Franchise Business Opportunities@
  10. It’s best just to clearly communicate with your creditor, after all they are doing you a favour even if they are making money too. They aren’t as vicious as you might think either.

    June 23, 2009 Comment by Searching101@
  11. If you are in over your head with debt and you are not making enough to pay each month, you should seek some outside help, get a second job, or sell everything that is not bolted down to get yourself where you can pay down your debt.

    March 13, 2010 Comment by LISA TORRES@
  12. I get confused by finances as well and this has made it a lot clearer. Will definitely be avoiding a default situation. Thanks!

    June 10, 2010 Comment by Matthew O'Connor@
  13. thanks you for informing us how we get defaulters :D

    September 22, 2010 Comment by david@

RSS feed for comments on this post. or TrackBack URL

Leave a comment

CommentLuv badge