If you default on your loan (late with a payment by 30-90 days), your credit score will hit. As you have not paid the money, you will see the score drop, making it harder for you to secure loans in the future. Your details will also be passed to an in-house collections department with the lender or sold to a third-party debt collector.  They will then contact you to take the payments off you. Where possible, you will want to enter negotiations to create a payment plan that works for you to pay the debt off and avoid any further issues.  If you still do not make the payments, you can be taken to court, or the debt collector might seize assets as a way to recoup their money. You might have any savings or your car taken from you and sold to cover your debt.  You will want to avoid this as much as possible. If you struggle to make your payments,  contact the lender immediately. They don’t want the situation to escalate further and can help you make arrangements to ease the financial stress. Don’t suffer in silence or ignore the issue, as that will only worsen it.