Secured debts are the debts that are supported by some kind of property. The property becomes a ‘security’ or ‘collateral’ for the secured debt. When the borrower stops making regular payments, the lenders can sue them and seize the property pledged while availing the loan. You must plan carefully before availing secured debt, since non-repayment can make you financially crumbled and lose all your valuable savings.
Secured debt consolidation
We consolidate loans to reduce the interest rates of the debts and secured debt consolidation is no exception. You can accumulate all your secured debts into one through secured debt consolidation. By consolidating your secured debts in this manner, you will get a chance to avail lesser interest rates and monthly payments. The secured debt consolidation will replace all your debts with a loan that covers the sums of the entire gamut of debts you owe to various creditors. This results in a secured debt consolidation loan with enough collateral to reduce monthly payment substantially.
Availing secured debt consolidation loans gives you ample time to clear the installments and dues. With the lower interest rates and longer duration provided for repayment, you find the perfect way to rebuild your credit and streamline your finances. Secured debt consolidation loans offered to the debtors depend upon the collateral’s equity, credit history and the repayment capacity of the debtor. If you have bad credit ratings, you can persuade the service provider or creditor with your repayment strategy, income documents and statement of bank transactions to get the secured debt consolidation loans.
Secured debt relief
When you find yourself under pressure of losing your finances and savings due to secured debt, you must seek the help of debt relief management services. The debt relief team will get your credit details from various sources and design a monthly payment plan to relieve you off your debt within less possible time.
Secured debt relief agencies offer counseling programs through which they sensitize the debtors to the intricacies of secured debt relief and credit card management. The debt relief professionals will represent you, the debtors to the creditors and negotiate with them for arriving at a decision that is favorable to you. The secured debt relief experts will consolidate the debts into one single payment per month which will be paid to the credit counselors. The credit counselors will in turn distribute the amount to the respective creditors.
Secured debt during bankruptcy
Normally, when you file bankruptcy, most of your debts are discharged. You are not legally entitled to repay your debts and you will not be subjected to punitive measures legally by filing bankruptcy. The fact remains that the collateral you pledged while receiving secured debt will be seized by the financial service provider. Even if you declare yourself bankrupt, you will not be provided with asset protection. You can request the lender to reaffirm secured debts which will enable you to continue your payments monthly even after filing bankruptcy. This will give you another chance to protect your property.