When a person owes more on an item (like a car or house) than it is worth, the person is said to be ________________ on the loan.
Understand the Problem
The question is asking to fill in the blank with a term that describes a situation where a person owes more on a loan than the value of the item purchased, commonly referred to as being upside down on the loan.
Answer
Upside down
The final answer is upside down.
Answer for screen readers
The final answer is upside down.
More Information
Being 'upside down' on a loan means owing more than the asset's value, common in car loans and mortgages.
Tips
A common mistake is confusing 'upside down' with being 'secured.' Secured refers to loans backed by collateral.
Sources
- Auto Trade-Ins and Negative Equity: When You Owe More than Your Car's Worth - consumer.ftc.gov
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