This is where a consumer uses a singular larger credit item – like a credit card or loan – to clear a number of smaller, often higher-interest debts. Although debt consolidation will not always make repaying debts cheaper, it can certainly make repaying debt more manageable.
A default notice is issued to a borrower who consistently fails to keep up with their loan repayments – it could be considered the first stage, prior to further debt recovery action being taken which may/will include terminating the loan contract, thus making the total loan balance due immediately. Further action could then progress into legal action being taken to recover the debt, in the form of a CCJ being issued, for example.
A default can harm a person’s credit rating and make obtaining credit more difficult and/or increase the rate at which lenders will offer credit in the future.
A lender who you borrow money from directly, rather than through a third-party.