What is the difference between unsecured debt and secured debt?
Unsecured debt is any loan or debt that has no tangible assets or property attached to it. The most common types of unsecured debt are credit cards, department store cards, medical bills, utility bills, and personal loans. Should you fail to make timely payments, the lenders only recourse is to pursue legal action. Secured debt is debt for which the creditor has collateral in the form of a security interest in personal and/or real property. Should you fail to make timely payments on secured debt, the creditor is entitled to repossess the property and sell it.
Unsecured debt is any loan or debt that has no tangible assets or property attached to it. The most common types of unsecured debt are credit cards, department store cards, medical bills, utility bills, and personal loans. Should you fail to make timely payments, the lenders only recourse is to pursue legal action.
A secured debt is one where the creditor has a charge on real-estate or other assents as collateral such as a mortgage or automobile loan. An unsecured loan is one where the creditor has no secured assets such as credit cards, store cards and medical bills. Will my creditors continue to call and send letters? Yes they probably will however, after we contact them and explain your situation in many cases they will reduce. We will tell you your rights on how to handle and control abusive creditor harassment. Will my creditors continue to add interest? Creditors typically continue to add interest until the account is written off. We will be negotiating to have all interest charges removed as part of our service. Can creditors start legal action against me? Creditors have the right to use legal means to collect a debt and some creditors are more likely to file suit than others. In our experience many consumers will be threatened with legal action. Who controls the funds that I accumulate fo
A. Unsecured debt is any loan or debt that has no tangible assets or property attached to it. The most common types of unsecured debt are credit cards, department store cards, medical bills, utility bills, and personal loans. Should you fail to make timely payments, the lenders only recourse is to pursue legal action.
