Debt can be an overwhelming responsibility that may seem impossible to escape. No matter what type of debt you may have, the best way to get out from underneath it is to do your research and understand your options. That’s why it is important to know the different types of debt and how to determine if your debt is unsecured. 

The Different Types of Debt

· Priority Debt – This type of debt includes domestic support obligations and employee wages. Priority debts must be paid before prior obligations such as credit card balances and medical bills. 

· Administrative Debt – Another type of priority debt, administrative debt is created when goods or services are provided to your bankruptcy estate. One example of this is fees that are generated by attorneys and other professionals who have been court authorized to represent the bankruptcy estate. 

· Secured Debt – Backed by real or personal property, a secured debt allows a creditor to have legal right in seizing property as full or partial satisfaction of the debt. In a secured debt, a lender has the right to take away your home if payments have failed to be made on the loan.

· Unsecured Debt – Your unsecured debt is an obligation that has no specific property that serves as collateral for debt payment. If you promise to pay someone a specific amount of money at a particular time and fail to pledge real or personal property as collateral, this is unsecured debt. 

Common Unsecured Debts

The most common type of debt, unsecured debts can include: 

· Department store or credit card charges

· Student loans 

· Phone, electric, or other utility bills 

· Medical bills 

· Personal loans that didn’t require a security agreement 

· Court judgements such as garnishment or attachment 

· Income tax 

· Back rent 

The main exception of this debt includes home and auto loans, which are almost always secured.

What Happens If You Don’t Pay Your Unsecured Debt?

Failing to make a payment on your unsecured debt gives the creditor a reason to contact you to obtain payment. Creditors can also report the debt to a credit reporting agency or even file a lawsuit against you. However, a nongovernmental and unsecured creditor cannot take away any of your assets without a court judgement. 

Get Help With Your Unsecured Debt

At Progressive Debt Relief, our team has the ability and the experience to settle your unsecured debt in an efficient and discreet way. With free consultations and no upfront fees, our experts will work hand-in-hand with creditors to settle your debt once and for all. To learn more about our services or to schedule your complimentary consultation, contact us today at 1-800-590-1847.