Pay Your Instalments Regularly to Avoid County Court Judgments

Loan agreements or facilities agreements are legal documents made by the lenders in which the conditions for the issuance of loans are clearly mentioned. We can divide this agreement into 4 different sections:

·         Section 1 – it defines the terms that would be used throughout the document.

·         Section 2 – it tells the amount that is being borrowed, the schedule according to which the repayment would be made and the rate of interest. This is the main area of interest for the debtor.

·         Section 3 – it includes the terms & conditions, and some other facts like what must be done in case the borrower defaults. Most of the negotiation is done over this section.

·         Section 4 – it lays down the details of the contract between the parties.

Loan agreements ensure that the creditors will be getting their payments back. In case the regular payments are not made then the creditors can take the help of a court and get County Court judgments issued against the defaulters. It has a very bad effect on your credit ratings and inclusion of a CCJ in your file can further reduce your chances of getting a loan in the future. If a person makes the payments within the first 4 weeks of the issuance of a CCJ then he can ask for its removal from his file but if it is done after that then the judgement stays in your file and it is marked as satisfied which is not that bad. So people must make it a point to abide by the loan agreements and should make the payments regularly to avoid County Court judgments.