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, children would face the repercussion that is fastest should they had been to miss a repayment on an automobile, charge card, or cash advance (see figure 1). As a result to delinquency, car loan providers can start repossession, as the primary recourse of payday and bank card loan providers is always to take off further use of credit. Automotive loans are an area of specific concern, because they had reasonably woeful credit quality prior to the Covid 19 crisis started. Continue reading “To sum up, children would face the quickest repercussion when they had been to miss a repayment on an automobile”