Unsecured Debt >> Back to glossary
An unsecured debt is probably those that are in financial difficulty favor the most. Their feeling is that if the creditor does not have any security that the debtor own,s then the creditor cannot do anything about collecting the debt. This is the type of debt where the creditor has not asked you to assign the rights of any of your property or assets to the debt if you do not pay. Many times unsecured debts have a much higher interest rate and these would be your common debts like those that you owe on your credit cards.
Having an unsecured debt however can give you false security. You may think that you have nothing to lose by way of possessions which may be true. There are many other forms of legal action that can be taken against you however, for unpaid debts. You can be placed in the hands of collection agencies which may be able to take small claims court action. You could be faced with a garnishment of wages. An unsecured debt is a very small form of security when it comes to be debt ridden.
If you are in an uncontrollable debt situation don't waste the time taking comfort in unsecured debt or assume the attitude that you creditors can't get what you don't have. Instead take a few very important seconds to fill out our no obligation request for information here at DebtCafe USA. What this is going to do for you is open up a whole new world of debt control and debt remediation the right way. There are three ways to take responsibility for your debt situation.
- You can simply avoid them and let whatever legal actions are looming take place which will leave you financially unstable for years to come.
- You can try and seek out debt consolidation which more often than not compounds the debt problem where you end up in the first situation anyway.
- You can seek out and put into motion debt solution problems that get you out of debt the right way, without borrowing more money to camouflage a bad financial situation. This is our recommendation and we have the resources in place to help you become debt free. It all begins with our quote form.
