That time always comes when you find yourself in a financial fix and in need of a little cash boost. Your salary is not enough to renovate that beautifully furnished house. Or maybe you have a serious hospital emergency, and you need ready cash, as soon as possible to have an operation undertaken on a family member. You have tried all avenues in a desperate bid to raise the money.
It is in times like these that you will start considering the loan route, to help raise the desired amount. When you approach a number of financial institutions you will most probably be requested to have some sort of collateral. That beautiful oak dining room suite, one of the cars or even some of your best property, might have to be attached to help you secure that big loan.
This is the way these institutions secure the loan. In the unfortunate case of you not honoring the payment, the institution reserves the right to auction your goods to cover the loan amount. This is probably the best way and fairest way of handling loans. But now, the problem becomes a catastrophe when you realize you have no meaningful collateral to count on.
You do not own a motor vehicle, you live in a rented flat and you still pride yourself in that black and white television. The emergency strikes. Who do you call upon? You have nothing to guarantee that you will honor the payment should it be granted.
As much as it may seem hard on people who cannot qualify for secure loans, because of their social realities, it is also worth looking in from the institutions’ point of view. They need to protect their investments, and meet their shareholders demands.
Either way if you can and do possess goods of value, try for the secure loan as it shows your commitment to honoring the agreement. Most of these institutions are not out to reap you off, it is nothing personal, they are doing what is good for their business. They have to secure the loan.