Then your credit rating will be trashed, your credit score will drop by over a hundred points, and your loan will be turned over to a collection agency if you default. The collection agency will pursue you and could even seek a court judgment against you. (That’s the “recourse” section of a recourse loan.) You a security risk if you’re in the military, a loan default makes. Really the only appropriate method you can escape the collection procedure is always to file for bankruptcy. Needless to say bankruptcy also offers an effect that is devastating your credit rating (as well as your safety approval), but ideally you’ll workout a installment loans in Alabama payment plan because of the collection agency– or also even be entirely excused from having to pay the loan. Best of luck with that.
The “peers” who provide you their cash are hypothetically capable of understanding (and affording) these dangers.