Unsecured debt
Debt, arrears & collectionsDebt that is not backed by an asset or collateral.
Overview
Credit cards, personal loans, and overdrafts are unsecured.
Lenders rely on your credit history and affordability.
Why it matters
- It can be more expensive than secured debt.
- Missed payments can harm your credit profile.
- It can be included in debt management plans.
FAQs
Is a credit card unsecured debt?
Yes. Credit cards are unsecured.
Can unsecured debt lead to court action?
Yes. If it is not repaid, lenders can take legal action.
Related terms
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