This Chicago Fed Letter looks at what happens when borrowers miss debt payments and how long it takes for them to face a severe adverse consequence, such as foreclosure, wage garnishment, or repossession in order to understand better how the unfolding economic crisis is likely to affect U.S. Households.
In conclusion, a family group would face the repercussion that is fastest when they had been to miss a repayment on a car, bank card, or pay day loan (see figure 1). In reaction to delinquency, automobile loan providers can start repossession, although the primary recourse of payday and bank card loan providers is always to take off access that is further credit. Continue reading You are told by us All About Installment loans chicago