Secured Debt Shall For A 6th Grader In Wake
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Secured debt is backed by collateral, whereas unsecured debt doesn't require you to put any assets on the line to get approved. Because lenders take on more risk, unsecured debts tend to have higher interest rates and stricter eligibility requirements than secured debt.
Credit card debt is by far the most common type of unsecured debt. If you fail to make credit card payments, the card issuer cannot repossess the items you purchased.
Secured debt is backed by collateral, such as a house in the case of a mortgage, reducing the lender's risk. Unsecured debt, like most credit card debt, does not have collateral and often carries higher interest rates.
Both secured and unsecured debt can be discharged in Chapter 13 bankruptcies, but non-dischargeable unsecured debts cannot be discharged in California.
Examples of secured debt include mortgages, auto loans and secured credit cards.
Fixed Rate debt refers to a form of financing where the interest rate used to calculate the interest due in each period is constant (i.e. does not change).
Key Takeaways. Types of debt that cannot be discharged in bankruptcy include alimony, child support, and certain unpaid taxes. Other types of debt that cannot be alleviated in bankruptcy include debts for willful and malicious injury to another person or property.
