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.