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Have a regular source of income If you are thinking that you may have to default on a payday loan, think again. The loan companies collect a large amount of data from you about things like your employer, and your address. They will harass you continually until you get the loan paid off. It is better to borrow from family, sell things, or do whatever else it takes to just pay the loan off, and move on. When you are a defaulter in paying your EMIs of any personal loan regularly, it impacts not only your CIBIL credit rating but you are also inviting legal trouble. Therefore, instead of defaulting, it is always wise to convert a personal loan which is an unsecured loan to a secured loan against assets such as a house, car, mutual funds, RBI bonds, gold, bank fixed deposits, life insurance policy, shares and debentures by asking the bank to restructure your loan.