Zopa Loan issue

db_2024

I made a terrible financial decision a couple of months ago and took out a £1,000 loan from Zopa and am regretting making this decision.
i couldn’t afford to live so applied for this loan and now can’t cope with paying it back.

Zopa have told me that if I don’t pay it, the loan will default so is this the best way to go and what does a defaulted loan mean or do I have another option as I don’t feel like they should have lent me the money. 

Brie

If you stop paying a loan (or a credit card) then the company (Zopa in this case) will mark it as defaulted and stop collecting payments and also stop charging interest or fees.  They may eventually assign it to a debt collector or sell it to them.  Either way there will be a note on your credit history to show first non payment and then a default for the loan.  If it is sold to a debt collection company it will then show as zero with Zopa and a new amount (possibly with fees but probably not) with the new company.  

If you honestly feel like Zopa shouldn't have lent you the money then you could log a complaint with them for unaffordable lending.  It would be necessary to explain why the loan was unaffordable and likely they will want a full outline of your budget then and possibly now.  To give you an idea of what they will want look on the debt free wannabe board and find the "statement of accounts" (SOA) as that is essentially the same as a financial statement they will request.  Your bank statements from a couple of months back will provide the info needed for that period.  

Presumably there are other things in your budget that need sorting as well if you are struggling to pay this loan so you might want to post your SOA on the debt free board and see what other helpful advice people can give you.  Lots of us have been in similar situations in the past so have a lot of experience dealing with this sort of thing.