Understanding Your Risks and Rights with Credit Card Debt

There is a simple and easy way to understand the difference between secured and unsecured debt.

Secured debt is backed by some type of property, such as a car or house. Defaulting on this type of debt typically means the forfeiture of the property in question. Unsecured debt is backed simply by a promise of repayment, like student loans or payments for medical treatment. Because debtors cannot reclaim intangible things like education or physical health, these debts typically involve some leniency on the part of the creditors.

If you fail to make a repayment on unsecured debt, creditors have a few means at their disposal for recovering the owed amount, including the following:

Although the threat of these types of actions is quite serious, many creditors tend to overstate the urgency of repayment. You have options when it comes to addressing your debt situation. There is credit counseling, debt consolidation or bankruptcy. You will most likely have a lot of questions about what course of action to take and what the consequences are for each of the options. Contact an experienced bankruptcy attorney at DebtStoppers in Atlanta. We can do a free debt analysis so that you can see which course of action makes the most sense for you.

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