 TITLE: What Happens If I Default on a Loan? CONTENT: How to Avoid Defaulting on a Loan\n---------------------------------\nBecause defaulting on a loan can have long-term ramifications, it's best to try to do whatever you can to avoid it in the first place. Here are some tips that can help:\n*   **Talk with your lender.** Default isn't just expensive for you, it's expensive for lenders too. That's why many are willing to work with struggling borrowers to help them avoid default. If you're delinquent or worried about missing an upcoming payment, talk with your lender to try to come up with a modified payment plan.\n*   **Ask about deferment options.** With some loan types, particularly student loans, you may be able to request deferment or forbearance on your loan payments if you're experiencing financial hardship. Deferment and forbearance can give you some reprieve from your monthly payments for a time while you work to get back on your feet financially.\n*   **Consider debt consolidation.** If your credit score is in decent shape, you may be able to consolidate your debt with a new loan, which will pay off the original debt and ideally neutralize the threat of default. This option is best considered if you are having difficulty keeping up with several debt payments and have a plan to pay off the new loan. If not, you could just be delaying the inevitable.\nAs you consider these and other ways to avoid default, you may be able to prevent further damage to your credit. END