The times when you needed to secure all your debt have long passed and nowadays banks as well as private lenders give out unsecured loans that do not need collateral and that is more convenient to customers as well as the creditors themselves. In the old days every time you wanted to borrow money you needed to supply a pledge for a car or house as a collateral or have a guarantor that will personally guarantee the loan repayment. But consumers usually don’t want to persuade their family of friends to act as guarantors and they also do not want to put up their beloved things as collateral and that is why lenders slowly had to adapt and start issuing these unsecured loans. And nowadays you can even borrow unsecured long term loans and the only thing that the lender will ask you is that you provide your income statements so they can be a bit more confident that you will repay that debt.
These unsecured loans allow us to borrow money without risking to loose our house or car and that is a very great advantage but that does not mean you can borrow and not pay your debts. Because these unsecured quick loans have become so popular lenders have created a system where they can easily give your loan to a debt collector and if that does not help then the judicial system will help them get their money back! And because nobody wants to damage their credit rating we usually pay our debts in time even if they are unsecured but those few that don’t want to pay will eventually have to and their credit rating will be irreversibly damaged and no new loans will be issued to them.
Fast unsecured loans
One of the most popular financial services that has surfaced in the last few years are fast loans where you can borrow money trough the internet and can get up to 1500 lari for up to 30 days. These loans are used for many different reasons but one thing that stands out is that all these quick loans are unsecured and as long as you can provide a regular income statement you can get that money in your bank account in less than 15 minutes.
Long term unsecured loans
Because lending have become ubiquitous and short term unsecured loans are so profitable lenders have started to issue long term loans without the need to supply collateral or a guarantor. And that has led to a situation where you can borrow more than 7000 Lari in a couple of hours and the lender will just need a statement from your employer about your last 3 month income and will do a credit check to see if your credit score is good enough. And if everything will be in order you will get your long term loan transferred into your bank account in a couple of hours.
Unsecured debt consolidations
And because of all these unsecured long term loans you can now use debt consolidation without the need to give up a pledge to your car or house as a collateral and that is very convenient. You can just apply for a long term loan and pay your smaller loans without the need for a financial advisor or a visit to bank!
Unsecured loans give us more choices and more security because we do not need to give up our possessions as collateral and be afraid that they can be taken from us if we do not pay our debts. But that does not mean you can take on huge sums of this unsecured debt and then do not pay because sooner or later you will have to face the fact that the money you borrowed is not yours and you will have to pay it back. And that is why you should be careful and don’t take on too much debt even if it is unsecured!