What option will NOT be available if you are behind on loan payments?
A) You can ask to get out of your loan.
B) You can borrow money from friends and family.
C) A financial institution may offer for you to pay a little now and pay the rest after your next payday.
D) Your financial institution might allow you to defer the loan but you’ll have to pay the interest.
The correct answer is:
A) You can ask to get out of your loan.
You cannot simply “get out” of a loan because you are obligated by the terms of the loan agreement. Options like borrowing money from others, negotiating payment arrangements or deferring payments while continuing to accrue interest might be available, but you cannot walk away from the responsibility of repayment without legal consequences, such as default or damage to your credit score.
B) You can borrow money from friends and family.
This is a valid option if you are behind on loan payments. Borrowing money from friends or family can help you catch up on missed payments and avoid penalties or legal actions by the lender.
C) A financial institution may offer for you to pay a little now and pay the rest after your next payday.
Many financial institutions are willing to work with borrowers to create modified repayment plans. This option, often called a hardship plan or partial payment agreement, allows you to reduce immediate financial strain while making progress on your loan obligations.
D) Your financial institution might allow you to defer the loan but you’ll have to pay the interest.
Deferring a loan—postponing payments—is another legitimate option. Lenders may allow this temporarily in times of hardship, but they typically still charge interest, meaning your debt grows during the deferral period.
Conclusion:
Options B, C, and D are actual ways to manage overdue payments, while option A (“ask to get out of your loan”) is incorrect because loan agreements are binding and you cannot cancel them without fulfilling your contractual obligations.
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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