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Secured Debt and Unsecured Debt
There are two major types of debts; secured debt and unsecured debt.
The secured debt has collateral involved, for example, on mortgages, you are putting your home as collateral so if you are falling behind payments, they'll just take your home. Or on a car loan, if you fall behind payments, your car will be repossessed.
Secured Debt:
- Mortgages
- Auto loans
- Recreational Vehicle loans
So what about unsecured debt? Unsecured debt usually composed of:
- Personal loans
- Student loans
- Credit cards
- Gas cards
- Store cards
Unlike secured debt, on unsecured debt the lender has no collateral, nothing being promised as a repayment and that's why on unsecured debt the interest rate is much higher. Usually unsecured loans are given only to people who have good credit so it's like a "promise" for creditors.
It's much easier to settle your unsecured debt for less because there is no collateral or any promise to the creditors. So if you can make the creditors feel that this is their best interest to settle the debt with you because you don't own many assets.
Don't get it wrong, settling your debt with your creditors isn't easy it all, it may take a lot of time and efforts.
Our debt counselors have the experience and knowledge to squeeze the maximum from your creditors. We may reduce your debt by more than 60%.
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Apply for Free Counseling
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