Loan, you should know that they are not the same. There are many types of loans and loan terms and conditions can vary greatly. Different types of loans has its own benefits and risks. The terms of the loan guarantees might be more strict than an unsecured loan. One of the main difference between the two loan debt collection is how to deal with the event you default. The choice of debt repayment can manage different than unsecured loans secured loan. In an extension of economic difficulties, you may not have qualified with certain types of loans by eliminating bankruptcy.
Main loan purchases, such as a home or car, is called a mortgage. They are called secured loan, because debt get this type of loan collateral as a security. Mortgage is considered to be guaranteed loans. Mortgage loan, the lender shall have the right to take back home if you pay breach of contract. Mortgage defaults could lead to foreclosure, namely the rights of the bank to take over the family may be the seller in order to satisfy the debt. Credit loans, too. Banks can take back your car, sold to recover the loan amount. If the asset sale does not meet the debt owed by the full amount, you may still pay the rest of the amount of debt owed.
Personal guarantee loan means you are using your house or car as collateral, but receive money loan used to buy other items. An example of personal loan guarantees is a payday loan, you put your car ownership as loan collateral. Even without the use of borrowed money to buy cars, the lender shall have the right to take the car if you default to repay the loan. If your car in a payday loan, you still have to take on any debt still owe your car from a bank loan. This can lead to further financial troubles and more debt.