What is an "Un-secured" Debt mean?

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What is an "Un-secured" Debt mean?

Postby loganswar on August 28th, 2008, 5:48 pm

What does unsecured debt really mean. Please be specific and thank you for your time.
loganswar
 

Re: What is an "Un-secured" Debt mean?

Postby Seth Watson on September 28th, 2008, 12:34 pm

Legal Definition: A debt that is not tied to any item of property.

A Un-Secured debt is not tied to anything, I.E. A credit card or line of credit would be Un-secured as you would buy many things with the borrowed money, and the creditor can't come to your home and literally TAKE your groceries back that you may have bought on your credit card!

A Car loan, and a Mortgage are Secured because the creditor can physically take the property back if you default.
Seth Watson
CPDA, EDS Financial
swatson@expressdebt.net
Seth Watson
Debt Management
 
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