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Types of Debt | Unsecured Debt | Secured Debt London
There are two main types of debt: Unsecured Debt and Secured Debt.
Unsecured Debt | What is unsecured debt?
Unsecured Debt is a form of debt that is not secured to any asset. This means that your creditor does not have a claim to the goods you have purchased with the loan, even if you are not keeping up with the monthly payments you agreed to. An example of this is, if you borrowed money to buy a car and didn’t keep up with your agreed payments, the creditor has no right to your car and cannot repossess it. They can however pursue legal action to force you to make the payments. Unsecured debts are more common that secured debts and include debts such as…
- Credit Cards
- Catalogues
- Store Cards
- Bank Loans
- Overdrafts
- Unpaid Utility Bills, Phone Bills, VAT Bills etc.
Secured Debt | What is secured debt?
A Secured Debt (also referred to as a Secured Loan) is where you take out a loan, and secure it against an asset like your car or your house. This means the debt is secured to the creditor and if you fail to keep up with your agreed payments eventually the creditor could repossess the goods to which the loan was secured, i.e your car, house etc..
Need more information on Secured and Unsecured Loans?
Contact Debt Advice London now and we will be able to advise you straight away on Secured and Unsecured Loans. All our advice is FREE so you have nothing to loose and are under no obligation. Call now on 0800 043 0550 or visit the Contact Page to get in touch. Alternatively Speak Online to an Advisor.
