What is a default notice?
It is a letter from your lender that is usually sent after you have missed between three and six payments.
It sets out the details of your loan, what terms you have broken and what you need to do next.
A default notice is also added to your credit report, which can make it harder to borrow money in the future.
What is a CCJ?
It is a type of court order that can be filed against you if you owe money.
Unless you pay back your CCJ within 30 days it will be added to your credit report and stay there for six years.
Having a CCJ causes significant damage to your credit record and could make it much more expensive or stop you from borrowing money in the future.
CCJs only apply in England, Wales and Northern Ireland. In Scotland the courts use a process called enforcing a debt by due diligence.