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Unsecured Debt

   Also found in: Wikipedia 0.02 sec.
Unsecured debt
Debt that does not identify specific assets that the debtholder is entitled to in case of default.

Unsecured Debt
A debt that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. This means that an unsecured debt carries no collateral; in case of bankruptcy, the debt holder is considered a general creditor. Thus, the debt holder is paid out of funds that do not have a prior claim on them with a secured debt. Some unsecured debts, such as Treasury securities, are considered risk-free.


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Unfortunately, many Americans will never be able to pay off their unsecured debt because they are only making the minimum monthly payments.
The study also found that families with children had higher levels of both secured and unsecured debt.
THE number of people in the West Midlands with unsecured debts is rising as the credit crunch bites.
 
 
 
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