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1. Missed payments - often the first
sign that something is wrong.
2. Penalties - heavy penalty
charges can follow late or non-payment.
3. Juggling finances - unable
to make all repayments, individuals often prioritise one debt over
another, or go without basic living items.
4. Pressure from creditors -
unpaid creditors make contact at this stage, with varying levels of
understanding.
5. Breakdown - people can
become overwhelmed by the pressure of debt and try to ignore what
is happening. The debt gets worse.
6. Unrealistic arrangements -
when creditors make contact, repayments are often set too high. The
borrower is almost certain to default.
7. Legal proceedings -
leading to creditors asking the courts to issue enforcement orders,
bankruptcy and eviction.
8. Total loss - individuals
can incur large financial and personal loss.
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