What happens if the health loan is defaulted?

If a borrower defaults on a health loan, it can have serious consequences for their credit score and financial future. In the event of default, the lender may pursue legal action to recover the amount owed, which could result in wage garnishment, asset seizure, or other collection efforts. The borrower may also face additional fees, penalties, and charges, which can further damage their credit score and financial stability. It is important to carefully consider the terms and conditions of a health loan and to only borrow what can be realistically repaid in a timely manner. In case of financial hardship, it is advisable to communicate with the lender and explore options for deferment or forbearance before defaulting on the loan.