Secured Debt
Secured Debt is where the lender has taken security against the loan for lending you the money. Mortgages are an example of this – if you do not keep up repayments on your mortgage, your house may be repossessed. It’s the same with cars and hired purchase agreements – if you do not keep up repayments on your purchase agreement, your car will be forfeit. With secured debts, if you do not pay what is owed, you are at risk of losing whatever the loan is secured on.
If you unfortunate enough to ever experience repossession, your problems will not stop there. Your car or home will be sold at significantly less than it’s market value, creating a shortfall. The lender will then seek to collect this shortfall from you – this could amount to thousands of pounds, as interest is still charged until the sale goes through.
If you are experiencing these financial problems, it can be difficult to know where to turn. Contact us now using the form above. An experienced debt counsellor will call to discuss the best way of tackling your debt problems.