All About Self-Control. Self-control separates us from our ancient ancestors and the rest of the animal kingdom, thanks to our large prefrontal cortex. It is the ability to subdue our impulses in order to achieve longer-term goals.
A secured debt is money borrowed that is guaranteed (or secured) by the borrowerâs funds or assets and held by the lender in an interest-bearing account. More On Secured Debt Definition
The Promissory Note is simply the borrowerâs promise to repay the loan. The Promissory Note does not create a secured debt; it merely creates an unsecured debt. The second instrument, the Deed of Trust, changes the loan from an unsecured loan to a secured loan. In the Deed of Trust, also known as a Mortgage, the borrower pledges the house as collateral. In effect, the borrower promises the bank that if he or she fails to repay the loan, the bank can take the house. The process of taking the house is known as foreclosure, and it secures the bankâs right to repayment. A car loan is another type of secured loan. If you finance the purchase of a vehicle, you execute a Promissory Note to the lender as well as a Security Agreement. The Security Agreement gives the lender the right to repossess your car if you do not repay the loan.