WebIn finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment. Unsecured debts are sometimes called signature debt or personal loans. These differ from secured …

WebIn finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed.. The document evidencing the debt (e.g., a promissory …

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WebFeb 17, 2021 · Unsecured Debt . Unsecured debt has no collateral backing: It requires no security, as the name implies. If the borrower defaults on this type of debt, the lender must initiate a lawsuit to ...

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