What are
Unsecured Debts?
When
talking to debt companies, you may hear the words "Unsecured Debts Only"
frequently. It can be confusing at times when you are getting bombarded with
new terms and need to make sense of all of them. This should clear up the confusion.
Simply
put, unsecured debts are usually debts which have no claim on personal property
or any other physical item you own. You are contractually obligated to pay the
debts on unsecured debts, and the creditors have every right to take legal means
to collect the debts, but they usually cannot seize property of yours as is
the case with secured debts.
The
types of collection methods can range quite a bit, but the most common way the
force you to pay money back is to garnish your wages through a judgement.
Examples
of Unsecured Debts are:
- Credit Cards
- Personal Loans
without collateral attached
- Student Loans
- Debt Consolidation
Loans not attached to a house
- Medical Bills
- Old Utility/Phone
bills where the line has been disconnected already (new utilities will be
shut off if not paid)
Typically debt
consolidation and debt negotiation companies only accept Unsecured Debts, so
when applying for these types of services make sure that your debts are unsecured.
If
you would like a free quote from a company similar to the ones mentioned
above, click here
or call 1-800-646-2993.
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