How a secured loan works When you get a secured loan, lender will either take your collateral or process your collateral so that they have a legal claim to it. You will receive money for loan, which is often somewhat less than value of collateral… that way if you should default on your secured loan then lender will still be able to get their money back. When you repay your loan then lender will either return property that you submitted as collateral or they will present you with a release… which means that they no longer have any legal claim to property and you can prove it. Should you default on your loan, however, then after attempting to collect debt lender will be free to repossess and sell your collateral in order to get their money back.

Shopping for a secured loan Before deciding on a secured loan, you should shop around and compare your options. Look for lender that offers lowest interest rates and borrow only minimum amount that you need to get by. After all, less you borrow with a secured loan then less you have to pay back… and lower your chances of losing your collateral.

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Work out how much money you need to live lifestyle you want, and then take that figure and work out how much money you need invested to produce an equal income.

You might just be pleasantly surprised at how much you really need, and that it is not that far out of your reach.

Are these returns really possible?

The figures we talked about above are really just to give you an idea of what’s possible. Again everything is relative to how much work, time, money and commitment you are prepared to make in order to secure these returns.

A good managed fund will give you around a 10% return per year, but if you want to take things to next level, then only way to do this is to learn how to invest your own money. Returns of 25% and higher are certainly possible, people make returns like this all time. You just need to learn strategies, and apply them. Sure there will be some bumps in road ahead, but consider alternatives.

Your job for this week, is to set some time aside and figure out how much money you will need in order to replace your income. Work out all your living expenses and any other costs you need to consider, and make that your first goal.

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