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Can your house be taken for unsecured debt in Illinois?
In general, an unsecured debt cannot lead to the forfeiture of a solid asset like a house. Unsecured debt is not tied to collateral.
What is the difference between secured debt and unsecured debt?
A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.
Consider Debt Consolidation Loans?
When you find yourself in a situation where it is not possible for you to pay off all of your monthly payments each month, it is important to resolve this issues as soon as possible. Delinquent accounts can start to hurt your credit rating, and if they are ignored they can eventually lead to bankruptcy. One of the best ways to deal with the issue is through the use of a debt consolidation loan. A debt consolidation loan can be unsecured or secured, and there are advantages and disadvantages to each choice. Unsecured debt consolidations loans are not tied to any collateral. This means that you do not have to risk losing an important asset like a home or car if you are unable to pay back the loan on time. This is the primary advantage of a debt consolidation loan that is unsecured. At the same time, an unsecured loan typically has higher interest rates than a secured loan. This means that it will take longer to pay off the debt, and it could possibly cost more each month.
Is bank OD a secured or unsecured loan?
A bank overdraft is an unsecured line of credit. The size of the line is negotiated with the bank and the rate is generally tied to the Prime rate (or LIBOR).
What is the function of interest rates?
One word: PROFIT. That's the short answer. The long answer is the function of interest rates are tied to risk. A bank, lender, loan shark, etc... set their interest rates based on the perceived risk inherent with the loan. That is why personal loans and credit cards carry a higher interest rate than car or boat loans which are still higher than property loans. Personal loans are only a promise to pay with no collateral to fall back on while a home or building is the collateral for a property loan; there is an avenue of recourse for the bank. The more opportunity the lender has to lose money, the higher the interest rate. The other side of this has to do with investing and the risk/reward scenario. Various investments have different rates of return as the risk is different in each case. Stocks are risky and can deliver a great return or even negative return. Government bonds deliver a guaranteed return with no risk but the return is usually quite low.
Where can someone get a flexible secured loan?
A flexible secured loan is a loan instrument that is backed-up by a collateral, usually a property. Another variation for this kind of loan is the Home Equity Line of Credit, whose interest rate is usually tied to the prime interest rate.
What is meant by highly geared company?
the business has a lot of money tied up in loans and interest.
What agency sets the interest rate on loans?
The agency responsible for setting interest rates on loans is the Federal Reserve Board. The interest rate on loans is tied into the rate of inflation and the GNP or Gross National Product.
What conditions are attached to home equity loans?
These loans generally are tied to the prime rate, and may be tax deductible. They are usually revolving lines of credit with little standardization
Can a credit card company take your home because of an unpaid balance in Virginia?
NO WAY * Yes. In the majority of U.S. states any creditor (including credit card issuers) can file suit and if they win can use the judgment to place a lien against a home and then request a forced sale of the property. However, even though it is legally possible it is very rarely done. Whether or not a home can be sold depends upon the amount of equity the owner has vs. the allowed homestead exemption, the existing state laws governing forced sale actions and how the property is titled. Many consumer's believe a credit card is being considered an unsecured debt the issuer or their agent has no legal recourses to collect money owed, this is not true. Unsecured debt simply indicates that there is no specific collateral that the debt is tied to and therefore all property belonging to the debtor that is not exempted under the laws of the state where the debtor resides is subject to creditor seizure and sale or attachment. "Macky"
Which banks specialize in small business loans?
Most small, hometown banks specialize in small business loans. Due to the fact that they are more tied to their community, they are willing to take into consideration businesses that may not pass the criteria needed for bigger banks.
Where can I go to get payday finance loans?
If you are running low on cash and your finances are tied up, a payday loan may be a good idea. There are dozens of these places around all cities in the United States.
