Many people believe that defaulting on a loan means only missing a payment. That is not true. Defaulting on a loan technically means failure to meet the terms of the loan agreement, which does include payment, but also much more.

You have to make sure that you clearly understand all of your obligations under a loan. Do not sign a contract if you are unclear about anything.

Bad terms can really get you down and cause you a lot of trouble. If you do not agree with every term of a loan contract then do not sign it.

The money is not worth the trouble that will come back to haunt you if you default so be sure you know what you are signing up for!