You might find yourself obligated to pay an entire debt in full if you miss several payments because of the ____ clause found in most installment loan contracts.

Question

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The acceleration clause states that if the borrower misses several payments, the lender has the right to demand that the entire debt be paid in full immediately. This is a common clause found in most installment loan contracts. A lien is a legal claim on an asset used as collateral, a cosigner is someone who agrees to be responsible for a loan if the primary borrower defaults, and a mortgage is a loan specifically for purchasing real estate.

You Might Find Yourself Obligated to Pay an Entire Debt