What is secured debt?
Secured debt is defined as any type of debt that is backed up by an asset. This includes your car loan or your home loan because if you do not pay the loan, the bank or the creditor can take those assets back as a form of repayment. On average, secured debt will have a lower interest rate than unsecured debt due to the fact that the bank understands that they will not lose as much money in the long run because the asset is guaranteeing the loan.
When an individual is attempting to recover from debt and rebuild his or her credit, a secured credit card is a viable option. In the case of a secured credit card, an individual will set aside an amount of cash to the creditor, and then given a credit card. If an individual gave the creditor $1,000, then they are able to charge up to $1,000 on the card, and the cash that you set aside will secure the loan.
Bankruptcy Attorney Serving Wichita
Our qualified Kansas bankruptcy attorney at the Kansas Bankruptcy Center will be able to answer all of your questions regarding secured debt. Dealing with debtors on a daily basis, we understand that facing extreme amounts of debt will be a difficult situation for both you and your family. When attempting to alleviate some of your debt, make sure that you begin by paying off any of your secured loans, because those are the loans in which a creditor will be able to take your assets.
However, because each individual's financial situation is unique to the amount of debt he or she owes, there will be a different approach to finding debt relief for each debtor. Having a Wichita bankruptcy lawyer by your side through your entire debt relief process will only optimize your chances of finding a timely solution to your depressed financial situation.
For more information of secured debt, do not hesitate to contact a Kansas bankruptcy attorney at our firm.