Finding a Bankruptcy Lawyer

Many lawyers specialize in certain areas, and some have a better reputation than others.

Consolidating your credit cards requires good credit

Finding the right type of interest rate is just as crucial as the rate's actual percentage.

Unsecured Versus Secured Credit Cards

Despite the collateral, secured cards carry high fees. Still, they are easier to obtain than unsecured cards.

One Monthly Payment or Bills, Bills, Bills

Bill consolidation programs are essentially loans that are provided to help pay off existing bills.

Lowering Your Monthly Mortgage Payment

How to do so temporarily.

Mortgages rates at an all time low

Now may be a good time to get a new mortgage or refinance an existing one.

Low fee payday loans still have sky high rates

They still have a much higher rate than typical loans.

What Your Credit Score Really Means

Although your credit score is not what defines you as a person, it can most likely be what defines you as a borrower. Lenders use credit scores to predict repayment rates based on past performance.

Applying for New Credit

Applying for an account can hurt you in the short term and help in the long term.

Federal Help with Credit Card Debt

If you are in debt or struggling financially, the federal government does have some programs that may assist you, though not in the form you might think.

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What is Unsecured Debt?

By Lacy Gallagher on August 2, 2011

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Unsecured debt is a loan that a lender provides a debtor without any fundamental assets or collateral. Secured debt involves assets or collateral, which would include homes or cars for which a lender provides mortgages. In an instance where the debtor is not paying the lender in the agreed upon manner, the lender can repossess the collateral items with secured debt. Understanding the differences between secured and unsecured debts can help debtors prioritize payments on their various lines of credit.

Since the lender has no guarantee that they will receive some form of payment in the unfortunate event of a debtor’s bankruptcy, liquidation or failure to meet the agreed upon terms, these unsecured loans are riskier for lenders and therefore carry higher interest rates. In the unfortunate event that the unsecured debt is unable to be paid back, the lenders are not able to seize any of the debtors’ possessions, so the delinquent account is turned over to a collection agency. If this approach is unsuccessful, then the lender can take the debtor to court to garnish wages, seize an asset or put a lien on other assets until the lender is paid.

Examples of unsecured debt:

Personal loans. Also referred to as signature loans. Loans provided based on your credit history that allow the creditor to spend the money in however they see fit. That could include home improvement, vacations, technology or any unexpected expenses.
Student loans. These loans are issued to students at low interest rates for the purpose of completing higher education. Student debtors can often defer payments on this type of loan for a year or two after completing the education program.
Credit cards. The most common form of unsecured debt. Credit cards allow you to make large purchases and only pay minimum payments, which can be dangerous because fees and interest rates can climb to higher than the payment being made on the debt.
Medical bills. Emergency room visits, lab work, dental procedures or any other debt acquired for medical services. Insured patients are only responsible for the amount that the insurance company does not pay. In the case of children’s medical debt, the parent or guardian is financially responsible.
Court-ordered child support. In a court appointed child support agreement, the court will garnish wages from paychecks, seize property or the IRS can collect the amount owned to the child.