One little-known way to receive assistance when you need cash is the Reverse Mortgage Program. Although a version of this program is available through the federal government, reverse mortgages are becoming more widely used in general among senior homeowners.
A secured loan is a collateral-backed loan, such as with property or other items of value. Collateral-backed secured loans make lenders feel more confident since they can put a lien on the item only if you are unable to make your payments. The benefits of a secured loan can include:
- Lower interest rates and large loan amounts.
- Not needing great or good credit.
- Faster approval times.
- Flexible terms, like the length of the loan.
You can use a secured loan to save money and make money. For example, personal loans for debt consolidation can save you hundreds to thousands on interest payments.
Credit cards have high-interest rates, typically 20 to 30 percent.
A secured personal loan at half that rate or less helps you put more towards the principal amount, making you pay your debt off faster and for less money.
Likewise, it can make managing your finances easier since you will have only one monthly payment instead of multiple.
In addition to consolidating credit card debt into a loan, you can use the funds from a secured loan to invest and make money. For instance, you can spruce up your home before selling it to raise its value.
A couple of thousand dollars reinvested into your house can increase its selling price, letting you repay the loan and keep the difference.