With surging numbers of Coronavirus cases worldwide, more and more people are being furloughed, laid off or asked to take paid leave with no guarantee of job stability. Increasingly, people worldwide are wondering what happens if you default on a loan because you don’t have the cash flow to pay it?
There are six possible outcomes, as described below. If you are tight on money and are defaulting on a loan, you’re not alone.
In fact, around one million people will default on their student loans this year alone, along with all of those who are defaulting on their mortgages. With the Coronavirus pandemic affecting economies worldwide, loan defaults could reach unprecedented new highs.