Loans are an important part of our capitalist economy, allowing people to grow and invest in their future and provide for their families. However, as important as loans are, many people are not thoroughly familiar with the options available to them. Because loans are important to securing homes, cars, and other expensive items, it may be a good idea to familiarize yourself with the types of loans available to you.
Unsecured loans are best understood in comparison to secured loans. While secured loans are backed with the borrower’s collateral (frequently a home or a car), unsecured loans are not secured by the borrower’s assets. If a borrower defaults on the loan, there is no property for the lender to take possession of.
Some of the most common forms of unsecured loans include:
- Credit card debt
- Personal loans
- Corporate bonds
Because there is no security for the lender, unsecured loans are traditionally reserved for smaller debts.
If you or someone you love is suffering from hefty debt that he or she cannot afford to pay off, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office may be able to help you get the debt relief you need. To learn about what we may be able to do for you, contact us today by calling 414-377-0518.