When the loan cannot be repaid, the primary impact is the serious damage to personal credit. Overdue records will be entered into the bank credit information system, and serious overdue behavior may even lead to being included in the list of "untrustworthy executors". For secured loans, such as car loans or mortgages, the bank's handling process is clearer. The bank will collect the money by phone first, and if the borrower still fails to repay the money, it will further collect it on the spot. If it is still invalid, the bank will go through legal procedures, apply to the court to freeze the collateral, and repay the outstanding debts by auction, including principal, interest, lawyer's fees and legal fees. If the auction proceeds exceed the total amount owed, the rest will be returned to the borrower. For unsecured loans, banks will try to collect them at home first, and borrowers who maliciously fail to repay may face legal proceedings and legal sanctions.