Not paying back a loan

Taylor21

I have taken a loan out with a company over 12 months which have a high interest rate and I'm struggling every month. Would it be a terrible idea to stop paying back the loan and cancel the card it comes off of every month? I already have really bad credit. Will this eventually catch up with me?
Help!

fatbelly

You can only do what you can do.

Post a statement of affairs and we can probably answer that question.

nimbo

I do think that just stopping the payments will in the long run bite you in the !!!!.

Could you call them and negotiate a lower payment for a period while you find your feet again?

What has changed that you just cannot cope with the payment any more?

~Beanie~

Taylor21 wrote: »

I have taken a loan out with a company over 12 months which have a high interest rate and I'm struggling every month. Would it be a terrible idea to stop paying back the loan and cancel the card it comes off of every month? I already have really bad credit. Will this eventually catch up with me?
Help!

Of course it will be a terrible idea and it will definately catch up with you.

How much was the loan for, when did you take it out and how long is there left to pay? What is the interest rate?

DCFC79

If you just stop the payments then yes of course it will catch up with you.

redpete

Taylor21 wrote: »

Would it be a terrible idea to stop paying back the loan and cancel the card it comes off of every month?

Yes, an even worse idea than taking the loan out in the first place.