Question

Carrie qualifies for a car loan with a 5.5% interest on a five-year repayment term. She makes a down payment on the car and makes her car payments on time each month. If Carrie borrows money from a payday loan lender to cover some unexpected expenses, which statement is correct?

Answer 1

Select the best answer from the choices provided.
She can miss a car payment if she makes her payday loan payment on time.
She can use her car as collateral for the payday loan if she makes her car payments on time.
She will not have to repay the payday loan if she makes her car payments on time.
She will not face repossession if she defaults on her payday loan.