Secured Debt
With A Trust Deed You Could Write Off Your Unaffordable Debt
What is Secured Debt?
A secured debt can fall into two main categories:
The first involves the borrower putting forward an asset of theirs, usually their house or property, as collateral for the loan. This means that should the borrower no longer be able to pay the loan, the lender can ‘possess’ the property and use its sale as a way of paying the debt.
The second is often referred to as Hire Purchase, whereby the consumer takes out a loan to purchase goods e.g. a car. If there borrower can no longer pay the loan, then it is the item they purchased that can be ‘repossessed’.
Takes a look through our secured debt articles to find out more.
Secured Debt Examples?
Secured Debt FAQs
Can You Settle a Secured Loan?
If your financial situation improves significantly, then you may want to settle some or all of your debts earlier than planned. You should be able to do this, as long as your lender agrees.
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Can You Write Off a Secured Loan?
We often get asked whether Secured Debt can be written off. The answer to this is NO. Or at least it is highly unlikely.
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What Happens if I Don’t Pay a Secured Loan?
A secured loan is attached to your property, so if you are struggling to make your repayments, then your lender could apply to the courts to have your property repossessed to pay back the debt.
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How Can I Get Out of My Rent Arrears?
Your rent should be considered a priority within your monthly budget, but if you do fall into arrears with your landlord, you could be at risk of eviction if you do not act.
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