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A secured debt means that you have pledged some asset that you own to a lender of money, in the event you do not pay back the money you borrow or fulfill the other obligations of the contract. It could be your house or your vehicle, or even some bonds or annuities that you have which has a money value to it.
Usually the secured debt item has to be one that is equal to or of higher value than the money being borrowed. This way if the lender has to take ownership of the security they can sell it and get the money they loaned back. A secured debt is not one that should be taken lightly because of the loss that can be realized. Many times out of frustration a person in debt will make the comment that a "debtor cannot get blood out of a stone". Meaning they can't go after money that the debtor doesn't have. What they are forgetting about perhaps is that the creditor can go after the asset that has been put up as collateral in the secured debt transaction. Creditors usually get their money one way or another.
Sometimes wrong thinking about a secured debt can occur as well. People think that if their security is taken to pay a debt owed and it's a relatively small amount still owed, that the balance of the sale of the security will pay off the rest of their debts. They don't have to go to the trouble of selling the asset as the creditor of the secured debt will do this. Word of warning is that the creditor will usually only sell the asset for the amount needed to clear the amount owed and any other expenses owed related to the debt. This makes for a quick sale and it's not likely the creditor is going to hold onto the asset for the best amount possible because he doesn't get to keep the excess amount. So you as the original owner of the asset gain nothing.
Unless you really understand all of the financial and legal terminology that goes along with borrowing money you need professional help the moment you realize you debt situation is out of control. The longer you wait when you are headed into debt problems the much quicker the problem escalates. This is why you see so many people that have secured debts end up losing their most precious assets. You do not have to be one of these individuals. Simply fill out our no obligation quote form here at debtcafe.com. By doing so you are going to get access to some of the most successful deb resolving specialists in the financial world to help you get your debt not only under control but totally resolved. A simple form such as the one here can mean the difference of you losing some of your most precious possessions through a secured debt gone wrong, and a happy debt free future.