If the Debtor makes a payment after the bill's due date the debtor is charged a late fee and the payment for the loan amount is considered delinquent. Payments which are not paid for more than 30 days may be reported to a credit bureau agency and affect the borrower's credit score. If payments are not made for several months contractually the borrower may be within their legal rights to repossess the property.
There has been a sharp increase in delinquent home mortgage and credit card payments in the United States. Increased delinquency rates have been caused by the downturn in the economy, the decease in the housing market, loss of jobs, lax lending standards and consumers borrowing more money than they can repay.
If the delinquent debt is unsecured the lender can hire a collection agency to contact the borrower and attempt to collect at least a portion of the outstanding debt.