New Delhi, Feb. 6 -- When you face some financial problem or hardship, you can explore the prospect of raising apersonal loan. Typically, a personal loan is taken out for a number of reasons such as a medical emergency, buying a luxury item, renovating the house and even for travel.

However, one should make sure that the personal loan amount is not too big to be repaid easily. Theloan repayment burden should be less than half of your monthly income. Here we discuss the consequences of defaulting on a personal loan.

Defaulting on a personal loan can have serious financial, legal, and personal consequences. For example, negative impact oncredit score, financial penalties imposed by the lender and so on. Here's what typically happens when ...