By 1950, typical middle-class Americans had revolving credit accounts at different merchants. Maintaining several different cards and monthly payments was inconvenient which created a new opportunity. Diners Club introduces its charge card, allowing the consumer to use one card with many different merchants. This helped open the floodgates for other consumer credit products. BankAmericard, now called Visa followed in 1958 - the advent of revolving credit lines and credit cards.
Throughout time installment lending has been used as a tool by societies and companies to move products and services to support economic growth. Installment lending is used by consumers as a tool to help them acquire goods and services to improve their lives.
Life happens and sometimes you just can't repay your loan on time. Expect inbound messages from your lender, increasing in severity over time. The main thing lenders are looking for is some type of engagement from you. Your lender is looking to work with you on repaying the loan - working proactively with your lender may reduce the severity of the messages as well as increase flexibility, reduce stress, and end in a better result.
If you're not able to take action on your loan and repay some or all of what's due, the lender may hand you off to a collection agency. The primary objection of a collection agency is to get you to pay off some or all of your loan. The good news is you ount than originally owned with the collection agency - the bad news is that the settlement will likely go on your credit report and hurt your credit score.
If there is collateral associated with the loan (such as with a mortgage or car), expect the lender to contact you about repossessing the collateral.