A secured loan is a type of loan that requires the borrower to guarantee an asset such as a vehicle or property as a security for the borrowed money. For secured home or auto loans, the asset bought with the borrowed money can also be used as a security. In this matter, the lender may have proprietorship to the asset until the debt is repaid completely with the interest charges. If the debtor fails to repay the debt, the creditor may obtain title to the asset offered as a security. Items like stocks and bonds can also be collateralized.
Financial institutions usually offer different types of secured loans. Different types of secured loans comprise of secured credit cards, see here, non-recourse loans, foreclosure and repossession. For mortgage loans, the house is provided as collateral to the debt. If the debtor fails to pay back a mortgage loan, the debtor may forfeit the house. Non-recourse loans claim only the collateral in the case of default by the borrower.
Secured loans are usually in the form of a vehicle, jewelry or stocks. In the case of default on a foreclosure loan, the lender resells the property to claim for lost money. Foreclosures are applicable only to property. In a repossession loan, the creditor may trade the car to cater for his loss.
It is necessary for the creditor to collateralize a debt due to the probability of nonpayment by the debtor as the creditor cannot advance cash based on verbal assurance only. Hence, collateralizing the debt is a secure method for the creditor to advance a big debt. Additionally, when the debt is pledged to your house, the debtor makes sure that the loan is paid back, so that he obtains the title to his own house.
Moreover, when a loan is secured using an asset, lenders usually charge an interest rate that is lower than that of an unsecured loan. This is because in the event of nonpayment by the debtor, the creditor can claim a major part of the advanced money obtaining title to the collateralized item.
Creditors may also allow the debtors to prolong the debt term between 5 to 30 years. This offer is feasible for borrowers who do not want to burden their monthly expenses by a large monthly bill and like to spread their repayment over a longer period of time. This results in a higher interest which intensifies the overall amount of the debt. Mostly secured loans are thought to be very lucrative because of their ability to make adjustments in the duration of the debt and reduced interest rates.
A credit card can be used for anything or everything, be it booking a hotel room or a table for two. It also enables you to purchase whatever you like without caring about the money accessible to you at that time.
Moreover, keeping a credit card ready also means that you don’t have to go to the trouble of leaving your house to buy something. You can simply order anything you like by using your phone or the internet while being in the safety of your house and paying with your credit card. You’ll be delivered the product you asked for in a couple of days and you wouldn’t have left the safety of your house and the coziness of your room to do so.
Credit cards not only provide you the convenience to shop and purchase, they also allow you to put aside some cash that you own in case of an emergency or an unexpected event. So, by using a credit card to make payments for everyday items, you are able to keep yourself a healthy emergency fund.
Credit cards also have a reward program which may allow you to earn rewards and discount bonuses. Such rebates are gained by paying for day to day expenses like paying for gas, paying for groceries, repairs through credit cards.
The usage of credit cards is not free of risks. People tend to get so caught up in the habit to use credit cards for purchases that they often get themselves into a disastrous situation of unpaid debt. This may be because they make heavy purchases using credit cards, not worrying about the huge bill that they are accruing in the meanwhile. Therefore, you need to keep yourself in check while making payments using your credit card.
Having easy access to credit is considered to be very useful as it allows you to buy anything you want without the hassle of carrying around a lot of money. It also allows you to have fulfilled your immediate needs even if you don’t have cash at the moment and are waiting for your next pay check to arrive.
If you are not in your town and you have no cash available at the time, you can arrange for a place to stay or to pay for the airline fare through your credit card, if you have to meet your sick relative. This is why the use of credit cards has become extremely popular among the western nations. Moreover, traveling with a credit card can save you from a big loss in case you are unfortunate to get robbed.
Another important issue is whether the property or project they develop has any potential. Of course, you are likely to get estimates and there is no guarantee that the actual quantities of silver will match these. It is possible that the management, financial controllers, and geologists promise more as to attract investors. While potential is one thing, especially on paper, exploration is not always feasible. For example, the infrastructure costs may be too high or the region may be hard to access, even though the drill results are decent. Senior mining companies are different in that. Senior miners are more experienced, larger mining companies that own and run existing mines. With mining sites already generating profits, investors find it easier to evaluate the company’s profitability.
This comes with fewer surprises and a degree of consistency when it comes to stock prices. Junior mining companies, on the other hand, have to identify different mining sites and explore their potential. There is always a risk that exploration will not result in actual discovery. This may be a costly initiative for junior mining sites and their investors. Many junior miners sell their sites to established mining companies to ensure better returns after they begin exploitation. However, if the miner does not have funds to even start exploitation, this signals financial losses to follow.
If investing in senior and junior silver miners, you should know what these types of miners have to offer in terms of value and risk. In the area of senior mining, investors can look at income statements and balance sheets and make a fairly good judgment about the company’s value. The situation is different with junior miners where buying silver stock requires looking at charts, the company’s properties, getting to know the management body, and so on. In many of these cases, there is no way of knowing whether a junior miner will make a discovery or not. Some investors just rely on their intuition, but experts recommend gathering as much information as possible. For example, it is good to know that the management body has performed well in exploration or the small mining field. Another indicator of a sound company is if its management had run or discovered a profitable mining site in the past. Naturally, investors also want to look at the cash balance and cash flow of junior mining companies. Although some companies may have developed good projects, high burn rate means that they will have to close operations in a couple of months. Unless they find additional financing, this is a likely scenario. The management should be able to respond on the question of how long they can continue operations if things do not go according to plan.
If you are in debt you can try to get your way out of it just the way you got into it-gradually! You just need to show some patience and perseverance and think about following these tips here.
• Don’t be in denial and admit you have a debt in hands and set aside sometime each day to deal with your piggy bank.
• You might need to dwell on large budget cut backs if you feel haunted by a big debt ahead. You can sell your new car and can even opt for a small apartment on a lower rent.
• You can do overtime or ask your housewife to opt for selling homemade items like dresses, business lunches, paintings, decorations etc.; freelancing is an apt job for females with a talent opening doors for a new source of income.
• For the first 30 days keep your credit cards aside and don’t buy unnecessary stuff. The essential items like bills, groceries, gas, fees need to be paid on priority basis. The semi-luxury items, gadgets, and mobile devices can be halted in this period as they increase expenditure cause of recharging, balance fill or monthly purchase.
• Start making small cut backs, like buying non branded items at grocery, packing lunch for work, wearing sweaters instead of using heaters etc.
• Next, you can make an emergency fund with these small savings and set your target to an accumulation of at least $1000.
• The bill payment needs to be monitored either by paying them as soon as they come. This can be done by paying online or setting up a reminder in your calendar or mobile to caution you about the due date.
• Start paying debts in small amount even if you have $100 in your emergency finance. Discretionary spending needs to be watched till all small debts are paid off. Wait for a couple of months till you get a large sum in your emergency deposit to pay off big debts.
• It’s time to list up the items with the first column having debts like bills, electronic rentals, auto loans etc. The amount in debt for these items goes in second column. Your minimum payment per month and interest comes in third and fourth column respectively. This shows how much minimum you have to pay towards debt every month.
• It’s time to make a spending plan; first record all your monthly bills (house rental fee, utilities, insurance etc), and then the variable expenses of groceries, gas, meals etc. The monthly debt payments and the deposit in emergency fund need to be included as well.
• List out your income sources and monthly amounts and divide it starting from emergency funds, debt payments, and then monthly bills. In the end, you can deal with your variable expenses by putting cash in separately tagged and designated envelopes.