Back to the GlossaryUnsecured Debt
A unsecured debt is a loan that does not have an asset attached to the loan as collateral or a lien placed against an asset as security for the repayment of the loan.
The opposite of a unsecured debt is a secured debt. An example of a secured loan would be an auto loan. If you are unable to make payments on the loan, the bank can then seize the collateral which would mean they would repossess the vehicle.
Other types of secured debts would be home loans, cash transfer loans, payday loans, student loans, and taxes.
Unsecured debts could be medical bills, credit cards, store cards, gas cards, utility bills, phone bills, notes on repossessed vehicles (deficiency balance), personal loans, bank loans.
It is important to note what type of debts you have because when you have trouble paying your bills, certain types of debt qualify for debt consolidation while others do not. Typically, only unsecured debts qualify. If you are unsure if your debt is secured or unsecured, a quick place to check is on your credit report.
Credit reports will list if the loan is secured or not and typically will state what the collateral is.
When you consolidate your debt, you will:
- Lower your monthly payment
- Save 40-60%
- Payoff in 36 months
Debts that qualify:
- Credit Cards
- Collection Agency Accounts
- Personal Loans
- Medical Bills
- Unsecured Debt
Guaranteed - No Spam
- Your information will not be sold
- Privacy Policy
Eliminate your DEBT by 40-60%
Client Savings
Jeff
Virgina Beach, VA
Original Debt: $30,990
Settlement Payoff: $6,000
Percentage of Savings: 19%
Nichol
Austin, TX
Original Debt: $50,858
Settlement Payoff: $12,000
Percentage of Savings: 67%
Roy W
Houston, TX
Original Debt: $17,982
Settlement Payoff: $2,742
Percentage of Savings: 85%
Testimonial
"My name is Kenneth and I recently became debt free thanks to FH Financial Service and in particular to my representative/agent, Danny R.I became associated with FHF in August 2008. I had gotten myself into financial hardship with credit card debts/payments that quickly got out of my control. I found...(Read More)"