Chapter 4.3, Problem 3R

To determine

To write: Three possible consequences of not meeting personal responsibility as a borrower.

Explanation of Solution

A borrower is a lawful term for an individual or substance that gets assets from a business or individual for a predefined endless supply of promising to reimburse the credit. As a borrower, one has the right to:

1. Pay in advance the outstanding loan amount without penalty.
2. Request for change in the repayment plan.
3. Request for grace period and subsidies on a specific type of loan.
4. Use deferment or forbearance to postpone payments.

The three potential outcomes of not meeting an individual duty as a borrower are as follows:

1. An individual doesn't pay on time; the bank may need to utilize an arrangement association to help recover the resources.
2. Never pay if the moneylender needs to limit it and accept an incident.
3. Get a dreadful record as a buyer.