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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 debts that 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 differ quite a bit, but the most common way to force you to pay money back is to garnish your wages through a judgment.

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)
• Alimony and Child support
• Health club dues
• Loans from friends or relatives
• Lawyer’s and accountant’s dues
• Union dues
  

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.