Summary: Failure to promptly repay a secured equity loan typically results in immediate financial penalties, including increased interest and late fees. More seriously, prolonged non-payment leads to a formal default notice, severe damage to your credit file, and ultimately risks legal action by the lender, which could result in the repossession of the property used as security for the loan.

Summary: Equity loans are secured debts. If you cannot repay the loan according to the contract terms, you will enter default, which can lead to legal action, rising costs, and potentially the repossession of your home. It is crucial to communicate with your lender immediately if you foresee difficulties.