What could potentially happen if a consumer defaults on a debt?

When a consumer defaults on a debt, one of the primary consequences is that legal action may be taken by the creditor. When payments are not made as agreed, creditors often seek to recover the amount owed through various means. This can include filing a lawsuit against the consumer, which may lead to a court judgment that can result in wage garnishment, liens on property, or other enforcement actions to recover the debt.

In many cases, creditors view default as a serious breach of contract, and legal action becomes a necessary step to enforce repayment. It is also important for consumers to understand that defaulting on a debt can have lasting repercussions beyond just legal consequences; it also negatively impacts their credit score, making it more difficult to obtain credit in the future.

The other options suggest outcomes that are unlikely to occur following a default. For instance, while some debts may be forgiven under certain circumstances (such as bankruptcy), this is not a typical result of defaulting. Additionally, a consumer's credit score is unlikely to improve after a default; rather, it is expected to decline due to the missed payments. Finally, the notion that a consumer can keep the debt without consequences does not reflect the reality of the financial and legal repercussions associated with defaulting on a debt