Question

What consequences do borrowers face if they miss many payments? Check all that apply.

Answer 1

Answer:

[A, B, D] Difficulty getting loans, garnished wages, and lost collateral.

Explanation:

There are three consequences that borrowers face if they were to miss payments.

The first is difficulty getting loans. This is due to a bad credit score. You can get a bad credit score by not paying your credit card fees on a monthly basis.

The second is garnished wages. This occurs when a portion of your income is set aside and unable for your own use.

The third is lost collateral. You can lose collateral if you fail to repay what you borrowed.

Answer 2

Correct answer choices are:

Difficulty getting loans
Garnished wages
Compounded late fees.

Your investor begins the proceedings method. Some lenders begin the method once one uncomprehensible payment whereas others can provide you with three months. In either case, the late payment is enclosed in your credit report and can have an effect on your credit score. Next month, you'll need to pay 2 mortgage payments and the late fee.