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By Sean A. Kelly
You might be wondering what is a judgement against you. If you are unsure of what is a judgement against you, it is really quite a simple concept. It basically means that your creditor whom you owe money has taken action against you often in court for not being able to pay up his or her debt. This is something that you would want to avoid at all costs as the situation can get rather messy and also would cause you a lot of unwanted public scrutiny. If you are able to find a way to pay your debt you should consider talking to your creditor and getting him or her to lift the judgement off your case.
Getting a judgement can also be detrimental to your credit score. Your credit scores are very important and are something that are always referred to by any financial institution when you are applying for a loan, a mortgage purchase and so on. When you have a judgement on your file, this will definitely show on your credit score and this is something that you definitely do not want to be reflected as it can reduce your chances of getting qualified for loans and such.
Encountering a loan default situation is also one that surely will not work in your favor. Whenever you take a loan or borrow money from a creditor you will have a fixed time frame by when you have to pay up the remaining amount of money. Failing to pay up the designated amount by that time shall result in you landing up in a loan default situation. When you obtain a defaulted loan status showing in your financial reports it can have a serious consequence on your overall financial status and your ability to gain credit again in the future from other financial institutions. Like a civil judgement over your head it also has the negative ability to bring down your credit score tremendously. Thus, avoiding a defaulted loan status should be something that we should always aim for at all costs. Even if we cannot make the full payment to the creditors it is best to ensure that we pay them at least the minimal amount by the due date.
One should always find a suitable way to pay off one’s loans or creditors in a timely manner and obtaining debt loans might be one way of doing so. A debt loan may be available from certain financial institutions. When you obtain a debt loan what you are actually doing is getting a loan from a financial institution that lends you the money on credit terms in order for you to pay up all your other existing loans which may need to be attended to immediately or urgently. Some firms offer debt consolidation loans whereby all your existing debts are bundled up into one loan. You then focus on just settling this one debt. The interest rates on this loan may also be lower thereby saving you more money along the way. Doing this also enables you to get out of debt a lot faster than you would normally be able to. We should always bear in mind that no matter for what reasons we borrow money and end up in debt, we should always find a suitable way to get out of it as fast and efficiently as possible.
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