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The Difference Between Secured Debts and Unsecured Debts #loan #calculator #personal


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The Difference Between Secured and Unsecured Debts

By LaToya Irby. Credit/Debt Management Expert

Welcome to About.com s Credit/Debt Management site, led by your guide, LaToya Irby. LaToya has been the credit and debt management guide since 2007. Read more

When it comes to debt, there are two major types: secured debt and unsecured debt. Knowing the difference is important for borrowing money and for prioritizing your debts during payoff.

Secured Debts

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If the selling price for the asset doesn t completely cover the debt, the lender may pursue you for the difference.

A mortgage and auto loan are both examples of secured debt. Your mortgage loan is secured by your home. Similarly, your auto loan is secured by your vehicle. If you become delinquent on these loan payments, the lender can foreclose or repossess the property.

Unsecured Debts

With unsecured debts. lenders don t have rights to any collateral for the debt. If you fall behind on your payments, they don t have the right to take any of your assets.

However, the lender may take other actions to get you to pay. For example, they will hire a debt collector to coax you to pay the debt. If that doesn t work, the lender may sue you and ask the court to garnish your wages. take an asset, or put a lien on another your assets until you ve paid your debt. They ll also report the delinquent status to the credit bureaus so it can be reflected on your credit report .

Credit card debt is the most widely-held unsecured debt. Other unsecured debts include student loans. payday loans. medical bills. and court-ordered child support.

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Prioritizing Secured and Unsecured Debts


What is the difference between loan and advance #debt #management


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What is the difference between loan and advance?

Ashik 2012

Answered Last

The main difference between Loan and Advance. the interest component.

2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts.

3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered at the end.

4. Example for Advance: Mr. X working in an organisation. He took $10,000 as advance to be repaid in 10 monthly installments. Monthly recovery from salary is $1,000. After 10 months, hi repays entire amount.

5. Example for Loan: Mr. Y took a Loan of $10,000 with a a simple interest rate of of 12% per year. Monthly installment is $1,000. Accrued Interest is calculated every month on balance principal amount. The recovery chart is as below.

Installment Balance Interest Accrued interest 10000 0 1 1000 9000 100 100 2 1000 8000 90 190 3 1000 7000 80 270 4 1000 6000 70 340 5 1000 5000 60 400 6 1000 4000 50 450 7 1000 3000 40 490 8 1000 2000 30 520 9 1000 1000 20 540 10 1000 0 10 550

After 10 monthly installments. the interest portion $550 is remaining. This may be repaid at a time. In case of huge loans, the interest amount is recovered in equal installments.

The main difference between Loan and Advance. the interest component.

2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts.

3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered at the end.

4. Example for Advance: Mr. X working in an organisation. He took $10,000 as advance to be repaid in 10 monthly installments. Monthly recovery from salary is $1,000. After 10 months, hi repays entire amount.

5. Example for Loan: Mr. Y took a Loan of $10,000 with a a simple interest rate of of 12% per year. Monthly installment is $1,000. Accrued Interest is calculated every month on balance principal amount. The recovery chart is as below.

Installment Balance Interest Accrued interest 10000 0 1 1000 9000 100 100 2 1000 8000 90 190 3 1000 7000 80 270 4 1000 6000 70 340 5 1000 5000 60 400 6 1000 4000 50 450 7 1000 3000 40 490 8 1000 2000 30 520 9 1000 1000 20 540 10 1000 0 10 550

After 10 monthly installments. the interest portion $550 is remaining. This may be repaid at a time. In case of huge loans, the interest amount is recovered in equal installments.

The main difference between Loan and Advance. the interest component.

2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts.

3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered at the end.

4. Example for Advance: Mr. X working in an organisation. He took $10,000 as advance to be repaid in 10 monthly installments. Monthly recovery from salary is $1,000. After 10 months, hi repays entire amount.

5. Example for Loan: Mr. Y took a Loan of $10,000 with a a simple interest rate of of 12% per year. Monthly installment is $1,000. Accrued Interest is calculated every month on balance principal amount. The recovery chart is as below.

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Difference Between Dietician and Nutritionist #difference #between #dietician #and #nutritionist


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Difference Between Dietician and Nutritionist

We often hear people using the terms dietician and nutritionist interchangeably. Though it is used interchangeably in many places, there are many differences in the designations, roles, and responsibilities of these professionals.

A nutritionist is a person who holds a degree in the discipline of nutrition. It can also be a doctorate degree. A dietician is a person who will have completed the concerned examination as well as an internship. These people are licensed to work and are known more as Registered Dieticians. They usually need a degree and post-graduate degree in the program. For the license, they must specifically pass the licensing exam.

Nutritionists are not professionals who are licensed by the state board. This does not mean that they work illegally. If they hold a bachelors degree, licensing is not required. But in the case of dieticians, the professionals cannot work without the licenses. If they do so, their practise is illegal. Non-licensed professionals usually use the designations of Dietary Educator or Diet Specialist.

A nutritionist is a person who can advise you on your balanced meals and health. This professional helps you in figuring out what diets are good for your body nature. A dietician helps you with your obesity problems. This professional is capable of giving you tips on how to lose weight and instruct diets specifically for the purpose.

Usually nutritionists work in the government health sectors like the health departments. Dieticians usually work in private and other hospitals and are usually better paid than nutritionists. They also work in the public health and community spheres, research, and academic domains as well. Those who practice privately offer one-to-one counselling as well.

Dieticians meeting the national standards specified for training and education can use titles like RD, RDt, or PDt. These professionals are held accountable by the law for the conduct and care provided by them to their patients. On the other hand, nutritionist is not protected by law everywhere. But the accredited nutritionists can have designations like Associate Nutritionists, Registered Nutritionist, and Associate Public Health Nutritionists.

In medical scenarios, dieticians provide the artificial nutritional requirements to the patients who are not able to consume the foods in the normal way. Dietary modification is a major section of the study and application of dietetics. These professionals usually prepare and serve the proper foods to the patients. A nutritionist elicits, disseminates, and promotes the knowledge on the effects of nutrition to people.

While seeking the professional advice of a dietician or nutritionist, you must check for the credibility of the profession. Self proclaimed dieticians and nutritionists can do harm to your body.

Summary:
1.Dietician is protected by law but nutritionist is not protected by law in all countries.
2.Dietician deals majorly with the problems of obesity and diets for weight loss. Nutritionists work by spreading the knowledge of the healthy foods and diets for healthy bodies.
3.Nutritionists usually work in the government sectors while dieticians concentrate more on the private sectors.


What Is the Difference Between a Cash Advance – a Payday Loan? #debt #consolidation #loans #bad #credit


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Credit Score Required

A payday loan typically does not require any type of credit check to authorize the loan. You only need to have a checking account so you can write a post-dated check to secure the loan. On the other hand, if you want to get a credit card cash advance, you need to have a credit card first. You can either use a card you already have or apply for a new one. All credit card companies check your credit score when you apply and only issue credit cards to people who meet their credit standards, which vary from one company to another.

Costs

The fee to get a payday loan is usually about $15 per every $100 you borrow for two weeks. If you roll over the loan, you have to pay the fee all over again. Therefore, if you keep rolling over the payday loan for a year, you will pay the equivalent of more than 300 percent interest. A credit card cash advance usually charges a fee of 1 to 4 percent of the amount advanced. Sometimes there might be a flat minimum fee. If the cash advance is through an ATM, there is likely an ATM fee of a few dollars. In addition, the borrower pays interest on the balance each month, usually at a rate a few percent higher than regular credit card purchases. According to Smart Money, most credit card cash advances charge 20 to 25 percent interest annually.

Repayment Schedule

When you take out a payday loan, you must repay it in full very soon, usually within two weeks. If you cannot repay it, you must pay the charges again to roll over the loan for another two weeks. Some states have laws that require payday lenders to work out an installment schedule to stretch out the repayment. With a credit card cash advance, on the other hand, you only have to pay the minimum credit card payment, which factors in the amount of the cash advance and any other draw on the line of credit. You can pay more than the minimum if you would like to pay it back sooner, but in general it is much easier to meet the repayment schedule for a credit card cash advance than a payday loan.

Which is Better?

The better type of borrowing depends on your situation. If you already have a credit card with available credit, a credit card cash advance offers a lower long-term interest rate and low monthly payments. If you do not have a credit card and do not think you will be able to get one fast enough, a payday loan offers a quick solution and moderate fees if you pay it back right away. However, if you do not expect to be able to pay back a payday loan in two weeks, carrying it over can be far more expensive than paying interest on a credit card cash advance.


What Is the Difference Between a Signature Loan and a Short-term Loan? #auto #loan #calculator


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What Is the Difference Between a Signature Loan and a Short-term Loan?

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It’s normal to obtain a loan to buy a house or vehicle. When you take out a loan for a house or car, the lender lets you repay the loan over several years. But what if you need a quick, short loan? In this case, you can apply for either a signature loan or a short-term loan. Signature loans and short-term loans carry certain similar characteristics; neither type of loan requires collateral and they both feature short repayment terms. However, there are key differences between the two.

Obtaining a Loan

Financial institutions, such as banks and credit unions, issue signature loans. You can apply for a loan in-person or submit an application via your bank’s online website. If approved for a signature loan, visit the bank to sign your documents and obtain your funds. Short-term loans, also known as payday loans or cash advances, aren’t issued by banks and credit unions. These loans are available from private loan companies. You can apply for a short-term loan with a local company or submit an online application. Loan companies operate differently from banks. If you submit an online application for a short-term loan, the loan company conducts the entire transaction via the Internet and fax. You supply your information, such as copies of your most recent paycheck stub, bank statement and driver’s license. After verifying your information and receiving your electronic signature, the loan company deposits funds into your bank account.


The difference between water and flood damage – 21st Century Insurance #21st #century, #21st #century #insurance, #insurance #information, #i #need #flood #insurance, #flood #insurance, #difference #between #flood #and #water #damage, #what #to #do #with #water #damage, #am #i #covered #flood #insurance, #march #2014 #newsletter


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In Touch With 21st – March 2014

The difference between water and flood damage

You return home to find your living room flooded. Will your insurance policy cover this loss? That depends on the type of insurance you chose to purchase, and how the water entered your house.

Types of insurance that can help

There are two types of policies that cover losses caused by water, homeowners insurance and flood insurance. These policies provide two different types of coverage that complement each other, but may not overlap.

Homeowners insurance. Most homeowner policies cover damage to your home caused by a sudden and accidental water event, such as a burst pipe, wind- or storm-driven rain or melting snow. Water damage caused by poor home maintenance such as overfilled gutters, a poorly maintained roof, and condensation buildup due to inadequate ventilation or unrepaired leaks will generally not be covered. Also, a homeowners policy doesn t protect against flood damage.

Flood insurance. While flood damage to your home and its contents is not covered under your homeowners policy, it could be covered by a separate flood insurance policy, available through the National Flood Insurance Program from the Federal Emergency Management Agency (FEMA) if you purchase this type of policy. A flood is defined as a rising and overflowing of a body of water onto normally dry land. For insurance purposes, the word “rising” in this definition is the key to distinguishing flood damage from water damage.

Flood insurance is available to homeowners and renters, for both personal and commercial properties. The cost of this insurance will vary depending on the amount of insurance purchased, what is covered and a property s flood risk. Note that it typically takes 30 days for flood insurance to take effect from the date of purchase.

What to do when water damage occurs

If water damage occurs to your property, such as with a storm, it is important to dry all wet areas and provide air circulation to aid in the drying process. Also, cover any exposed areas of the dwelling with a tarp to prevent further water damage. Covering exposed areas along with drying and dehumidifying wet areas can help minimize the possibility that mold will form due to the water damage. Always contact your insurance agent immediately to start the home owners insurance claims process.

Please note: This information is of a general nature for educational purposes only. It must not be taken as advice and does not signify an endorsement. 21st Century Insurance is not responsible for any injuries or loss incurred.


Difference between Short Term and Long Term Loans #loans #with #bad #credit


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Wealth Creation and Saving Strategies | OnMoneyMaking

Difference between Short Term and Long Term Loans

by: admin – March 27th, 2013 1 Comment

The thought of a loan seems to have crossed everyone s mind at some point in life. Generally it s not carefully thought out though. A loan is a specified amount of money someone borrows with the intention of paying it back. Generally it s over a said period of time and is paid back with interest. There are different types of loans falling into two major categories: short term and long term. A person may find themselves needing a loan for many different purposes.

Short Term Loans

Short term loans are generally up to about three years. A popular short term loan is a payday loan. Someone may take a payday loan out in the event of an emergency such as car repairs, taking a vacation, or other unexpected bills. Payday loans are like a cash advance in which the payment comes from your bank account on your next pay date. These are very popular because of the few requirements needed to be approved for the loan. Unlike a long term loan, you can get cash within 48 hours from companies like Online Payday Loans.net and there are no credit checks. These loans are generally up to $2000.

Another popular short term loan is a flexible loan. This is generally a credit based loan, but up to $25,000. The term is generally 12 months. Short term loans are at a higher interest rate than a long term loan, capitalizing on the length of your loan. A lender will use the situation that you do not have credit in order to offer the higher interest rate.

Long Term Loans

Long term loans can be taken over an extended amount of time. Most common long term loans are mortgages, student loans, wedding loans, start-up business loans, and home improvement loans. A long term loan is credit based. The better your credit score the better your interest rates will be. A long term loan can be in the form of a secure or an unsecured loan. A secure loan requires a form of collateral or asset, such as a title to your car or your home. An unsecured loan does not require any assets and has a higher interest rate as the lender has more at stake. You can think of this as a line of credit with your bank or a credit card.

Taking a long term loan is generally through a bank or credit union, unlike a short term loan. The amount of the loan will be based on your credit history and current income. With long term loans, you have greater flexibility with payment options. For instance, mortgage loans offer a fixed interest mortgage loan, in which the rate is the same over the term of the loan and the payments are split equally. An adjustable rate mortgage loan s rate can adjust every year. There is also an interest only loan, of which a person can pay only the interest of the loan for a set amount of years, and then start paying on the principal. Unlike short term loans, long term loans can help establish credit.

When making the decision to take a loan, it s important to think about a few things. Think if you really need the loan and weigh other options. Shop around for the best interest rates. Consider the consequences. Make sure you are able to afford paying the loan back. For instance, a payday loan will take so much of your next paycheck. Make sure it doesn t dig you further into debt on other bills.


Secured and Unsecured Loans: What – s the Difference? #instant #cash #loans


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Secured and Unsecured Loans: What s the Difference?

Loans can be tricky. With so many different options, how do you decide which one is right for you? For starters, it depends what you plan to purchase with the loan. Are you looking to take a vacation or buy a new home? The amount of money you’re borrowing will determine if you need an unsecured or secured loan.

Taking out a loan is a big financial commitment. By doing so, you’re essentially agreeing to give up a portion of your paycheck until the loan is paid off.

In case you’re wondering, an unsecured loan is a loan in which you don’t have to give the lender rights to a specific asset if you’re unable to repay the loan. This type of loan is generally taken out for home improvements. student loans, or personal loans. If you default on the loan, there’s nothing the creditor can take back to recover their loss of payment. With no protection if you default, interest rates are generally higher. Interest rates can range anywhere from 10–12%, and in some situations, are required to be repaid within two years.

On the other hand, a secured loan is a loan that’s used when borrowing a significantly larger sum of money. When taking out a secured loan, the borrower must provide some sort of collateral to ensure repayment. A secured loan is taken out for purchases such as a new car or home equity.

If you decide a secured loan is for you, what type of collateral must you provide? Depending on the terms of the agreement, it could be something as large as your home or your car. Secured loans generally offer lower rates, a higher borrowing limit and longer repayment terms due to the large sum of money that’s borrowed.

While you’re offering something up as collateral, that doesn’t necessarily mean you’ll lose your collateral for missing a payment or two. For example, if you take out a home equity loan, your home is your collateral. However, if you miss out on a payment, the lender is more likely to send you a letter requesting that you make your payment rather than take over possession. In the long run, it’ll take too much work and time for the lender to take over possession of your collateral for only missing a few payments. (Note: Just so we’re clear, I’m in no way suggesting it’s OK for you to blow off  your payments every once in a while. Keeping up to date is much better in the long run.)

Now that we know what unsecured and secured loans are, how can debt from each affect you? A small portion (about 10%) of your credit score is based on the type of debt you carry and whether or not you have a variety of credit types. Revolving credit, or credit that’s automatically renewed as debts are paid off, and installment loans are also taken into consideration. The better you are at paying off your debts on time, the better off your credit score will be in the long run.

As you can see, unsecured and secured loans are used for very different purposes. Most people only take out a small amount of secured loans due to the amount of money they have invested in them. Unsecured loans are much more common because they’re much easier to obtain.

In what situations have you sought a secured or unsecured loan? Let us know in the comments section below!

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What Is the Difference Between a Signature Loan and a Short-term Loan? #debt #management


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What Is the Difference Between a Signature Loan and a Short-term Loan?

More Articles

It’s normal to obtain a loan to buy a house or vehicle. When you take out a loan for a house or car, the lender lets you repay the loan over several years. But what if you need a quick, short loan? In this case, you can apply for either a signature loan or a short-term loan. Signature loans and short-term loans carry certain similar characteristics; neither type of loan requires collateral and they both feature short repayment terms. However, there are key differences between the two.

Obtaining a Loan

Financial institutions, such as banks and credit unions, issue signature loans. You can apply for a loan in-person or submit an application via your bank’s online website. If approved for a signature loan, visit the bank to sign your documents and obtain your funds. Short-term loans, also known as payday loans or cash advances, aren’t issued by banks and credit unions. These loans are available from private loan companies. You can apply for a short-term loan with a local company or submit an online application. Loan companies operate differently from banks. If you submit an online application for a short-term loan, the loan company conducts the entire transaction via the Internet and fax. You supply your information, such as copies of your most recent paycheck stub, bank statement and driver’s license. After verifying your information and receiving your electronic signature, the loan company deposits funds into your bank account.


The Difference Between Loans – Advances #interest #rates #on #student #loans


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Advances

An advance is an amount of money that is loaned from future earnings. For example, if you get a $500 advance on your salary, you next paycheck will be decreased by $500 to repay the money you borrowed from that paycheck.

Advantages of an Advance

Most companies that offer advances to their employees do not charge interest, so it can be a safe and cheaper alternative to a payday loan or short-term bank loan.

Loan

A loan is an amount borrowed from a bank or other institution that loans money. Borrowers sign a promissory note that states the terms of the loan and the length of time for repayment. Loans usually require an amount of interest to be paid back with the loan.

Advantages of Loans

A loan can be borrowed and paid back in increments over a period of time. Because it can be paid back in smaller amounts, paying back the loan is less than a hardship that losing a large amount from one paycheck.

Advance v. Loan

Advances are generally interest free, but must be paid back, usually from the next paycheck. Loans will have origination fees and interest, but can be repaid over a longer length of time.