What are the consequences of defaulting on a private student loan?

Defaulting on a private student loan can have serious consequences. In New Hampshire, lenders can take legal action to recover the money that is due, which could include wage garnishment. This means that your employer will be instructed to withhold a portion of your wages to pay the debt. Additionally, the lender could take you to court and get a judgement against you. The judgement can be enforced by having your wages or bank account seized, or by placing a lien on your property. Another consequence of defaulting is that it can severely damage your credit score. This can make it difficult for you to obtain any type of loan in the future, including mortgages, car loans, and credit cards. Additionally, it may be more difficult for you to obtain a job, as many employers check credit reports as part of the hiring process. Defaulting on a private student loan is not a decision to be taken lightly. The best way to prevent defaulting on a loan is to communicate with the lender and make sure you are able to make your payments on time and in full. Keep in mind that if payments are missed, the lender may charge late fees and eventually report the missed payments to the credit bureaus. It is important to find a solution with the lender that works for both of you.

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What are the consequences of defaulting on a private student loan?

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