Jim has a home loan and a car loan. he defaults on his home loan after a year of making payments on time. however, he continues to make all of his car payments on time. will his actions make his home debt a good or bad debt? why?
select the best answer from the choices provided.
a. jim's debt becomes a good debt since it is backed by collateral.
b. jim's debt becomes a bad debt since he cannot make payments.
c. jim's debt becomes a bad debt since it is not backed by collateral.
d. jim's debt becomes a good debt since he is making payments on his car.

When you default on a loan, you are not making payments on that loan anymore. Defaulting is used to describe a negative action that is happening due to the sudden stop of payment on a loan. In this case, when Jim stops making payments on his loans they have a negative impact on his credit score. The answer to the question is B. Jim's debt becomes a bad debt since he cannot make payments. Although Jim is making his car payments which is good he is not making his house payments which are required.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answer; post closing trial balance;