Speak Up! - View Question #19143

« LawForKids.org home page | « Go back to speak up question #19143

Question: What is collateral?

Answer: Collateral is an item of value that is accepted by the lender to be used to pay back the loan if you are unable to repay it yourself.

Comments
1 thru 1 of 1 comments
On 08/02/08
jeane from FL said:
Its like when a teacher askes for ur car keys or student id to keep on her desk till you return the pencil you borrowed.She makes sure she's getting that pencil back because you've given her something of value.
1 thru 1 of 1 comments



Read more about the law and When You Turn 18 and Credit
Related Stories
  • When You Turn 18
    • No stories found!
  • Credit
    • No stories found!
Related Laws
  • When You Turn 18
    • No laws found!
  • Credit
    • No laws found!
« LawForKids.org home page | « Go back to speak up question #19143