What is Secured Debt?

A secured debt can fall into two main categories:

 

The first involves the borrower  putting forward an asset of theirs, usually their house or property, as collateral for the loan. This means that should the borrower no longer be able to pay the loan, the lender can ‘possess’ the property and use its sale as a way of paying the debt. 

 

The second is often referred to as Hire Purchase, whereby the consumer takes out a loan to purchase goods e.g. a car. If there borrower can no longer pay the loan, then it is the item they purchased that can be ‘repossessed’.

 

Takes a look through our secured debt articles to find out more.

Secured Debt Examples?

Logbook Loan Debt

Logbook Loan Debt

A logbook loan involves borrowing a sum of money secured against your car. By signing up to a logbook loan, you are essentially passing the ownership of your car to the lender in exchange for money.

Mortgage Rent Debt

Mortgage & Rent Debt

Whether you own or rent your home, it is possible to fall behind on your payments and owe a debt to your lender, rental agency or property owner. 

IVA Trust Deed

Secured Loan Debt

When lending money to consumers, some companies like to have the security of attaching the loan to your assets.

Hire Purchase

Hire Purchase Debt

Hire Purchase (HP) is a type of finance agreement that is often used to purchase motor vehicles or household goods e.g. white goods and furniture.

Secured Debt FAQs

Secured Loan Debt
Secured Loan Debt FAQs

What is a Secured Loan?

A secured debt can fall into two main categories:  The first involves the borrower putting forward an asset of theirs, usually their house or property, as collateral for the loan. This means that should the borrower no longer be able to pay the loan, the lender can ‘possess’ the property and use its sale as a

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Mortgage Rent Debt
Mortgage & Rent Arrears FAQs

Can I Get a Mortgage with Mortgage Arrears?

The answer to this will largely depend on your lender. Some lenders are stricter than others…  So, in effect, the answer is ‘yes’ you could get a mortgage. Another factor that can come into play is, how many missed payments you have and how old they are. If you have 1 or 2 missed payments, then this is unlikely to cause too

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Logbook Loan Debt
Logbook Loan Debt FAQs

Logbook Loan – Can They Take My Car?

If you have taken out a logbook loan, then in effect you have already handed the legal ownership of your car over to the lender. They are agreeing to allow you to continue to use it.  This means that if you successfully pay the loan off, then the ownership of the car will be returned to you, but

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Hire Purchase
Hire Purchase Debt FAQs

What Happens if I Don’t Pay Hire Purchase?

Hire Purchase is most commonly used to buy cars; however, some businesses will use it to purchase expensive equipment. As long as you consistently make your repayments, once your payment term has ended, you will own the item outright.   But, if you continually miss payments, then the consequences can be severe. Here are the steps your lender is likely to take:    Payment Reminder-

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