All of us have been in the situation where we quickly need a significant amount of money. Perhaps the car has died on us. Ever been heading out on a holiday, with the car groaning under weight of the kids, their toys, the camping gear, and a long drive through a hot summer's day to the camping spot – only to have the car break down an hour after leaving home? This is not unknown.
Or maybe your daughter brings home some very happy news – she's going to get married! There's a wedding to pay for. You do not want to skimp on the celebrations, but you do not exactly have enough savings to cover even a modest Big Day. Then, later in life, there will be expensive medical treatments you will need to undergo. The bills will come and will have to be paid – somehow.
Many legitimate calls on our income
In fact it seems that at every step there are legitimate calls on our income and bank accounts. Most of the time we are able to meet them. But every now and then we'll be dealing flat-footed, or the expense will be so great that we'll need to borrow until we get back on our financial feet again.
Well the good news is that with planning, some financial advice, and careful husbanding of your income for a few months you can probably manage a loan quite easily. This is a great relief to know. Because usually the specific reason we need a loan to generate quick cash is a perfectly legitimate one. And the thought of being unable to find the money would be quite upsetting. You can get cash like this using a number of different instruments. But here we will consider secured loans.
Loans can be easy to find and safe to take up
You have heard about these. They are the loans where you approach a lender, like a bank or one of the number of excellent non-bank lenders in the community, and agree to put up something of value owned by you as a security against the loan you need. This asset is often you home, although anything of high value in which you have significant equity is just as good. So a classy boat or important paintings would be equally good security.
If you repay the loan as agreed, then everything is sweet. in fact they work beautifully for most people, but it does need to be remembered that your agreement to give up the asset if you fail to repay the loan is a serious, legal and binding agreement. So if your circumstances unexpectedly change and you suddenly can not make the repayments – even after the lender has made concessions and been generous with repayment 'holidays' – then you will hand over the security and the lender sells it to get back his loan money .
How to know your loan will be risk-free
There is a rule of thumb that will always keep you away from this risk. It is, simply, that a secured loan is best taken out when you are not under any debt pressure – if you have no other loans and receive a steady income. You can imagine how it would be if you were pressured by other debts. If you were only just managing to meet several existing repayments for other loans, took a secured loan, and suddenly saw your financial circumstances abruptly change. That would put you under a lot of pressure.
Since people are normally unhindered by a lot of loans, secured loans are an attractive, safe option for many of us. What you need to do to meet an unexpected expense is get on the Internet and find a reliable, approachable broker who can guide you into the best deal out there and make it easy for you to get your secured loan.