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Why did my interest rate go up when I went into default?

Team [WilliamPaid]
posted this on April 21, 2010 12:33

Lenders will offer loan benefits to borrowers who make consecutive payments on time or who are not in default.  Once the terms of these benefits have been breached, it is typical for the lender to increase the interest rate on your loans to its original rate on the Promissory Note (that is, eliminating any “borrower benefits” previously provided).

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