A secured loan is a loan in which the borrower pledges some asset (e.g. car or a property) as collateral for the loan. It then becomes a secured debt owed to the creditor who gives the loan. In the event that the borrower defaults or fails to pay the debt, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
Secured loans are easier to obtain than an unsecured loan (the opposite of secured loan), because the secured loan lender has the added benefit of security which provides protection in the event of a customer's inability to repay the secured loans amount. This also means that individuals who are self-employed, have a new job, or who have very bad credit can still take out a secured loan. They are useful as well for bigger amounts of money or where the customer requires a longer repayment period in which to repay the loan.
There at least two types of secured loans: the mortgage loans and nonrecourse loans. A mortgage loan is one in which the collateral used is a property such as a house/home. On the other hand, a nonrecourse loan is a loan where the collateral is the only security or claim the creditor has against the borrower, and the creditor has no further recourse against the borrower for any deficiency remaining after foreclosure against the property. Foreclosure is a legal process in which mortgaged property is sold to pay the debt of the defaulting borrower.
A secured loan is a very easy way to pay off all of your existing debts. Instead of struggling with different payments to different lenders, you can combine all your debts into one simple, affordable monthly repayment through debts consolidation.
So even if you have severe credit problems or have considered yourself "black listed", there are credit companies which can still help you at some very competitive rates. Self-employed? No problem, because they still offer secured loans to those who work for themselves. Interested? Then visit www.securedloans.com now.
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