Question

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

Explanation:

• Difficulty getting loans: Missing payments harms credit score, making future loans hard.
• Garnished wages: Lenders may get court orders to take part of borrower’s wages.
• Lost collateral: If loan is secured (e.g., mortgage, auto loan), collateral can be seized.
• Compounded late fees: Late fees often accrue, and interest on fees may compound.
• Elimination of all credit is extreme; credit isn’t fully eliminated, so this is incorrect.

Answer:

A. difficulty getting loans, B. garnished wages, D. lost collateral, E. compounded late fees