What is Secured DebtHow much is a secured debt?
Lease-purchase agreements are credits secured on the land acquired with the credit. Lease-purchase agreements are usually shortterm to medium-term borrowings and can be between £5,000 and £50,000. Hypothecaries are credits that are secured against the ownership acquired with the credit. Lending is taken out in the form of credits in conjunction with a principal mortage.
Again, these mortgages are mainly linked to real estate and have a typically term of 10 to 25 years. Keeping your payment for a secured debt is vital, because if you do not, it will result unavoidably in the return of the collateral that you have deposited. Unfortunately, secured debt cannot be recorded as debt in an IVA.
So if you are considering enlisting an IVA, you need to be sure of the kind of debt that you have just to make sure that you are not including a secured debt by mistake. What is more, if you are going to be able to pay off an IVA, you need to be sure of the kind of debt that you have just to make sure that you are not including a secured debt by error. Over the past few years, many have been confronted with the realization that they cannot affordable keep their mortgages or secured credit up.
Not only do forced expropriations cause much hardship and grief, they can also sometimes cause a very serious debt issue. Deficit is the amount of the loss between the amount originally due and the selling amount. And because the sales of the real estate generate the deficit, it converts the deficit from a secured debt to an uncollateralized debtutomatically.
Well, the good thing is that because the deficit is now classified as unfunded debt, it can be added to an IVA from that point. We will be able to talk about the possibilities available to you and how best to handle the problems of underfunding. When you are concerned about a debt situation and would like to learn more about your choices, please call 0800 088 7503, where one of our expert advisors is ready to help.
For more information on how to administer your funds and get free debt counseling, please go to the Currency Advisory Services, an independant online resource that helps individuals administer their funds.