BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lose your job
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Lender can file bankruptcy on your behalf
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You are turned down for new loans
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Collection agencies begin visiting your friends and relatives to collect your debt
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Detailed explanation-1: -Your debt will go to a collection agency. Debt collectors will contact you. Your credit history and score will be affected. Your debt will probably haunt you for years.
Detailed explanation-2: -If you do not repay your loan, the lender can take you to court. The court will then require that you pay back the amount in full or face other penalties such as wage garnishment or seizure of assets. The lender may also report the debt to credit bureaus and send debt collectors after you if payments become overdue.
Detailed explanation-3: -Defaulting on a loan will cause a substantial drop in your credit score, potentially resulting in higher interest rates on future loans. If you default on a loan secured with collateral, the bank may seize your pledged assets.
Detailed explanation-4: -Debt can lead to anxiety and depression, which can increase headaches, affect sleeping patterns and impact a person’s ability to focus. This type of physical stress on the body can result in more frequent colds and infections and affect a person’s ability to go to work which further enhances financial struggles.