How to Get Debt Relief on Secured Loans

by Contributor ; Updated September 26, 2017

How to Get Debt Relief on Secured Loans. A secured loan generally means you put something down for collateral on the loan. To find debt relief on a secured loan and get the collateral off the chopping block, there are a few different approaches you can take. This will not only take care of the secured loan, but can improve the outlook of your credit all together.

Pay off the loan. If you are able to come up with the money to pay off the secured loan, you will get the collateral back unscathed. The best way to do this is to come up with as much of the balance as you can in cash, then call the loan company and negotiate the terms to pay off the loan with a settlement for the amount you have in hand.

Contact a debt relief consolidation company. While this method will leave you with still owing money, you can pair the loan with some other loans or debts and get your collateral back safely. Debt consolidation companies can also often settle your loans and debts at a lower amount than if you had continued making the scheduled payments.

Make principal only payments. If you come into a sum of money unexpectedly, such as a hefty tax returns or payroll bonus, you should make a principal only payment on your loan. This will pay down the balance of the loan faster, allowing you to pay less in interest and more to the actual borrowed amount.

File for bankruptcy. This should be a last ditch effort but a bankruptcy is not as scary as it used to be and if you are young, can give a fresh start while still being able to build good credit, assets and wealth down the road.

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