Almost 80% of South Africans seek expensive unsecured loans to help them meet their monthly financial obligations, reports Business Live.
There are different types of debts.
DebtBusters lists them as follows:
- Mortgage: The home you are financing secures the loan.
- Car loan: The car itself is the loan collateral.
- Home equity loan: Your home secures the debt.
- Secured credit card: The money in your savings account or a certificate of deposit collate rises your secured credit card.
- Line of credit: Depending on the type of credit line, it may be secured by your home, the funds in your bank account, a certificate of deposit, or some other asset you own.
- Unsecured debt is a type of debt that relies on your written promise, with no secured collateral.