What Does Unsecured Mean? Part TwoFast Action Finance
When you are given your loan you are given it as an investment for that company, in much the same way that you buy stocks and shares as an investment. Just like those stocks and shares, you will hopefully be paying the company back their original investment along with additional interest â€“ that being the interest that gets charged to you on top of your loan that you pay back in addition to the main up front fee.
However like any investment there is an element of risk or of gambling involved in the companies giving you out personal loans. With stocks and shares the chance that the company will go down hill and reduce in value and that the value of its stock will therefore plummet as a result.
However with fast personal loans there’s the risk that the person the company lent the money to â€“ that being you â€“ might go bankrupt and thus be unable to pay the money back. When this happens and you go bankrupt the loan will be restructured and the lender will lose a lot of money as a result.