Ways to pay your debts to avoid legal action

pay your debts

The stress of being in debt can ruin your life in many ways. It may affect your mental as well as your physical health. Moreover, it is important to know that staying in debt can have a legal impact that may devastate your entire life. Therefore, it is essential to pay your debts to avoid legal action against you.

How does debt negatively affect your life?

Debt is a huge pain when it is not paid off. Not paying off your debt can affect your life in number of ways, including financial, emotional, and physical disturbances. It may even harm your human body because of anxiety, depression, and mental illness.

These are the negative signs of denying your debts that may complicate your life with more problems and negativity.

Recently, it has been observed that the majority of people were lagging behind in repaying their debts due to a financial trap.

What are the consequences of not paying your debt?

Debt can bring anxiety, depression, and mental illness

Stress is a very natural impact on people who are trapped in debt. Debts which are difficult to manage can have a negative impact on your credit score and also confined under the vicious cycle of debt, with no way out.

A feeling of financial hardship can easily lead to mental disorders like anxiety & depression.

Here is how debt will affect your well-being:

Debt may have a negative impact on your social and family members

If you don’t pay your debt, it has a negative impact on your family in many ways. A debt load can keep your families away from maintaining a healthy lifestyle and prevent them from fulfilling their desires and needs.

Unpaid debt may also affect your physical well-being​


Constant stress & anxiety because of debts may also take a toll on your physical well-being, which means causing different stress to your human body:

  1. Induce unbearable headaches
  2. Sleepless nights
  3. Lag in focusing on your daily lifestyle
  4. Avoidance of self-care

What is the legal action taken if you don’t pay your debts?

Having legal action taken against you by creditors or banks for the payment of debts can lead you to massive problem. Usually, creditors take legal action when you neglect paying your debts after constant warnings. Missing payments can lead to a lawsuit being filed against you by your creditors.

In advance of filing a lawsuit, they will send you legal notices, mentioning the information about filing a complaint against you. However, you will be called to court for a hearing. By getting bogged down in legal matters, you are increasing your burden, because you will need a lawyer to represent you, which includes legal fees.

In many cases, if your creditor identifies you as a wilful defaulter, the lender has the right to charge criminal charges under sections 403 and 415 of the IPC, 1869 against you.

How to pay your debts to avoid legal action?​

Here are the ways you can use to avoid yourself falling into legal matters in the future:

1. Opt for a debt management service:

Managing multiple debts alone can sometimes be stressful and failure to make complete repayment of the debts. By consulting a debt management service, you will be provided with convenient & affordable methods to pay your debts without borrowing further. Your service provider will set up an agreement with lenders to accept one lower monthly payment to become debt-free.

In order to qualify for a debt management plan, you should miss more than one EMI and have sufficient income to pay off your debts.

2. Inform your creditor

If you’re unable to repay your debts and don’t want to miss out further, you can simply convince them to give you more time. This will enable you to repay your debts.

This method may take time and, in some cases, creditors may even reject your request to pay your debts later.

3. Go for loan consolidation

If you’re unable to pay your debt, your last resort is to go with loan consolidation. This is a type of loan provided to the borrower to pay off the unpaid debts. This method may sound great and convenient, but it come with more burden of holding more debt during your financial hardship.

Rather than falling into debt trap, it is better to pay off your debt before the due date.


Always remember that when you are borrowing money, you must take it with the intention of repaying it. Your banks and lenders lend you money when you give a formal assurance of repaying it. Hence, it is your responsibility to pay off your debts on time. You may even have the chance of missing it. If you are going to miss a payment, help yourself with the above methods, to avoid further legal action taken by your lenders.

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