Our society runs on debt. Loans, mortgages, and credit drive our economy, and most of the big-ticket items in our life come to us with some form of loan attached. Houses, cars, and other expensive items are almost impossible for most of us to obtain without a loan from a bank or other lending institution. However, because of the implications of large money loans, it is often important to be familiar with the types of loans available, in order to protect your financial investment.
Loans can easily be grouped into two large types: secured and unsecured. Unfortunately, though the differences are significant, many people are unaware of them. Secured loans are those in which the borrower puts up property as collateral. The loan is therefore secured, in that the lending institution has security in the form of collateral to collect upon should the borrower fail to pay his or her debts.
Examples of secured loans include:
- Mortgage loans
- Nonrecourse loans
- Some car loans
Secured loans are often considered a safer investment for banks, as they have recourse should the borrower fail to repay the loan.
If you or someone you love is living with the burden of unsustainable debt, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, may be able to help. To learn more about what we may be able to do for you, contact us today by calling 414-377-0518.