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If your collateral is worth fewer than the outstanding financial debt, the borrower can however be chargeable for the rest from the financial debt.
Unsecured loans frequently element larger interest premiums, decrease borrowing limits, and shorter repayment phrases than secured loans. Lenders could sometimes demand a co-signer (a person who agrees to pay for a borrower's debt whenever they default) for unsecured loans When the lender deems the borrower as dangerous.
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