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Terms that begin with U

Unsecured Debt

Unsecured Debt is debt not tied to, or backed by any asset or collateral. This type of debt includes credit card debt, signature loans, medical bills, and debts for other types of service. Unsecured debt is generally more risky for the creditor, which is why interest rates on unsecured loans are typically higher than on loans with secured collateral, such as a mortgage on a home.


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