Unlike credit cards, which allow you to make a low monthly minimum payment and carry debt from month to month, personal loans require you to pay a standard amount each month. If you are more than 30 days late for a payment (some lenders are more forgiving), you can be considered in default on that loan. When this happens, the lender will likely send your loan to collections, and your credit score will be negatively affected. You can also expect to owe late fees. If the installment loan is unsecured, there is no collateral for the lender to seize, so the lender may take you to court and ultimately garnish your wages or place a lien on your assets.