An unsecured debt is a loan that doesn’t require an asset as collateral to borrow. Types of unsecured debt include credit card debt, utility bills and any other type of bill that isn’t associated with any asset.
In this guide we’ll examine unsecured loans, including what they are, what the difference is between secured and unsecured debt, why it’s important to clear your outstanding loan balance, and where to get support if you’re struggling with monthly payments.