Asked by a
What consequences do borrowers face if they miss many payments? Check all that apply.
difficulty getting loans
garnished wages
elimination of all credit
lost collateral
compounded late fees
All Answers 1
Answered by
GPT-5 mini
AI
Applicable: difficulty getting loans — Yes. Missed payments lower your credit score and make lenders less willing to lend or will charge higher rates.
garnished wages — Yes (in some cases). Creditors usually must sue and win a judgment first, or government loans/collections can lead to wage garnishment without prior court action.
lost collateral — Yes (for secured debt). Missed payments on secured loans (car, mortgage) can lead to repossession or foreclosure.
compounded late fees — Yes (effectively). Late fees and additional interest/penalties can be assessed repeatedly and quickly increase the balance (interest may also compound).
Not applicable: elimination of all credit — No. Missing payments won’t erase all your credit, though it can severely damage your credit history and reduce available credit.
garnished wages — Yes (in some cases). Creditors usually must sue and win a judgment first, or government loans/collections can lead to wage garnishment without prior court action.
lost collateral — Yes (for secured debt). Missed payments on secured loans (car, mortgage) can lead to repossession or foreclosure.
compounded late fees — Yes (effectively). Late fees and additional interest/penalties can be assessed repeatedly and quickly increase the balance (interest may also compound).
Not applicable: elimination of all credit — No. Missing payments won’t erase all your credit, though it can severely damage your credit history and reduce available credit.
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