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In this episode of "Finally Revealed," Michelle discusses the concept of default under a loan. She explains that before default occurs, a borrower is typically considered delinquent, indicating they are not meeting the terms of the contract, which is usually specified in a promissory note. Additionally, a loan may involve other documents such as a loan agreement, mortgage, or security agreement, especially if collateral is involved. It's crucial for borrowers to understand all documents associated with their loan, whether it's an installment loan or a credit card agreement. Michelle emphasizes the importance of reading these documents or having them reviewed to fully comprehend the terms of the loan.