Finance / July 19, 2018 / Andi Barnett
You know how it works. Every month you figure out the money you have coming in and the money you owe. There are your recurring bills for things like your cell phone and internet. There’s your regular spending on groceries and transportation. Then, there’s the money you spend to service your debt. That could be your mortgage, auto loan, student loans, personal loan or credit card debt.
Oftentimes, a personal loan is an unsecured loan. That is, the loan is made purely on the basis of the borrower's trustworthiness, and not secured by some form of collateral. Car loans are different in that they are almost always secured loans, whose collateral is the vehicle itself. And that means that if the borrower fails to make his or her payments, the vehicle will be repossessed and sold to pay off the loan debt.
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