UNSECURED
DEBT
Unsecured
Debts only, often times you will hear this term and in most cases
consumers are not really sure what unsecured debt is.
Unsecured debts are usually debts, which have no claim on personal
property or any other tangible item you own. Most unsecured debts
you are obligated to pay the debts based on the payment arrangements
set in your terms & conditions and the creditors have every
right to take legal means to collect the debts, however they usually
cannot seize property of yours as is the case with secured debts.
Examples of Unsecured Debts are:
• Credit Cards
• Personal Loans without collateral attached
• Student Loans
• Debt Consolidation Loans not attached to a house or other
tangible item
• Medical Bills
• Old Utility/Phone bills where the line has been disconnected
already (new utilities will be shut off if not paid)
Most
debt consolidation and credit counseling companies only accept Unsecured
Debts in their programs so be sure when applying for these types
of services that your debts are unsecured.
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