Question

What types of loans could result in the seizure of your property? Why might that be particularly bad for a Millennial borrower?

Answer 1

Answer:

What types of loans could result in the seizure of your property?

• a secured loan: e.g. a mortgage can result in a foreclosure of the house, an auto loan can result in a repossession of the car, etc. Secured loans generally include mortgages (first, second or even third), mechanics liens and auto loans.
• some unsecured loans that require a court judgment can seize your property through a Request and Order to Seize Property. Unsecured loans include credit card loans, payday loans, personal loans, student debt or any other type of loan that is not covered by collateral. Any creditor can request a court judgment to seize your property, but since the court filings cost

Why might that be particularly bad for a Millennial borrower?

• Building a good credit is extremely important since it represents paying much lower interest rates for all your loans, e.g. mortgage, credit card, car leases, etc. Many millennial borrowers, including myself, generally made the mistake of accepting too many loans. It is normal that once you start to work banks, large retailers and other financial institutions flood you with cheap loan offers. Many people (me too) think that low rates last forever and that it is easy to pay back your loans. The truth is that most interest rates start low and then after a certain time start to rise and then things get messy. A couple of years ago I decided to dump all my credit cards because they were simply too many (more than I actually needed) and paid them back one by one as soon as I could. Now I only have one credit card which I rarely use (I use my debit card now) and an auto loan.