Blog: June 2017

When a person obtains a loan for a home, car, large household item and more, the item purchased is what secures the loan. This is known as a security interest payment guaranteed. This financial arrangement is based on a person paying on the item while using it. Should a person stop making payments, it is known as a default. Once this happens, a creditor can get legal permission to remove the item from the person. This is known as a repossession.

Many Americans find themselves struggling with the problem of credit card debt. When you owe large amounts of money to your creditors, especially when you have more than one debt, it can negatively affect your credit, leaving you with a bad score and bad reputation. Fortunately, there are some credit cards that can help you to gradually improve your credit. Generally, the best options for rebuilding or improving credit are cards that are secured.

The term underwater mortgage describes a home loan for which the homeowners owe more than the appraised value of the property. For example, you purchased your home for $200,000 with a no down payment loan, and the market value has since dropped to $150,000 or lower. According to 2017 data from the National Association of Realtors, more than 13 percent of homeowners fall into this category.

Many consumers say they don’t understand credit. The truth is, cards and loans are all forms of debt. It’s easy to acquire too much debt or have problems paying it back.

Many debtors take on credit card “loans.” It’s easy to forget to make payments on time. It’s also relatively easy to get into financial trouble by borrowing too much by borrowing the maximum the card will allow.