ABOUT SECURED LOANS

Banks like making secured loans because there is less risk to them. The item you use to guarantee the loan is called collateral. As a rule, lenders expect the collateral’s value to exceed the amount of the loan for the term of the loan. This is why auto secured loans require you carry full coverage insurance on the vehicle for the life of your note. They want to ensure they receive their money even if something happens to the car.

While it is not always the case, secured loan rates are typically lower than unsecured loan rates. Again, this is a function of the decreased risk to the lender being passed along to you in the form of savings.

Kinds of secured loans

Mortgages and auto loans are the two most common kinds of secured loans, but any loan offering collateral in exchange for the funds is a secured loan. Some lenders accept stock certificates, retirement accounts and even insurance policies as collateral as long as your plan or policy does not specifically prohibit it. You can also secure a personal loan for business purposes with business equipment because it has a tangible value attached to it.

Jewelry, artwork and rare coins are less common collateral options, but options nonetheless.

What happens in default

As with any lending obligation, there are consequences for failure to repay secured loans. In addition to the default showing up on your credit report and adversely affecting your credit score, foreclosure or repossession can occur. If, for example, you used your truck to secure your loan and stop making payments, the truck is legally property of the lender. You receive notice to surrender the vehicle, but if you don’t comply within a specified amount of time, someone will come to take the vehicle from you. In the case of home foreclosure, you must vacate the premises within a certain period of time or your things are placed on the lawn and locks are changed.Only you can determine if secured loans are the best option for your financial needs when choice exists.

Launching the Herbalife Decade in Magical Orlando

The 2010 Leadership Summit in beautiful Orlando, Fla., was full of glitz and glamour as we celebrated yet another amazing year of overwhelming success. Once again we surpassed our company’s record for biggest bonus payout ever! This year’s total payout was $36,500,000. Our #1 Distributor, Enrique Varela & Graciela Mier took home the biggest payout at the Mark Hughes Bonus Award ceremony on Saturday, March 20. Congratulations to all our Bonus winners from the entire Herbalife family.

The Herbalife Family Foundation (HFF) presented its prestigious Humanitarian Award to Leslie Stanford for exemplifying the foundation’s mission–an exceptional involvement and dedication that has made a considerable impact and helped to change lives around the world. Distributors got to bask in the magic of the moment at the Ebony & Ivory Gala benefiting the Herbalife Family Foundation.

Some of our achievements over the past 30 years can also be attributed to the inspiration of the late Jim Rohn, America’s foremost business philosopher. It was with much pride that Herbalife honored Jim with a heartfelt celebration tribute attended by Distributors, staff and friends. Throughout the Leadership Summit, each day of the event focused on one of our three decades. We laid the foundation for an even brighter future. Our Chairman and CEO Michael O. Johnson shared his vision to take the company to the next level in 2010 and to launch The Herbalife Decade by building on our company’s incredible momentum.

This year’s “Dream Team” speakers was full of inspiration. Our top achievers shared their winning business practices, and the power ignited by their words will undoubtedly fuel us to even greater success in this new era.