What Is Secured Debt?
Secured debt is a type of loan that allows an individual or business to borrow money from a lender, like a bank, and receive security for the loan. This security is usually in the form of collateral, such as property or other assets. Secured debt can be beneficial for borrowers who may have a lower credit score or limited financial history because it reduces the risk to lenders.
When taking out secured debt, borrowers must agree to terms with their lender and provide collateral to secure the loan. The value of this collateral must be equal to or greater than the amount being borrowed. If the borrower were not able to make payments on their loan, then they would lose whatever item was given as collateral, which could range from stocks and bonds to jewelry and cars.
The Law Offices of Omar Zambrano has helped thousands of people and them businesses in the past to get out of debt and start over.
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