Secured and Unsecured Debt Information From 4 Pillars Debt Consultants In Victoria

Dealing with banks, credit companies, and financial institutions can be a challenge, particularly in understanding the different terms used in the industry. Consumers in Victoria who have debt will often be asked if the debt is secured or unsecured.

Working with 4 Pillars debt consultants to understand the different types of debt is extremely helpful in understanding your options to resolve the financial problem. Not all debt needs to be managed the same way, which provides opportunities and options that can pay off the debt over time and prevent issues such as foreclosure, repossession, or ongoing creditor demands.

Secured Debt

Not all people that come to 4 Pillars debt consultants for assistance have secured debt. This is debt that is offset by an asset that the creditor has access to in the event of a payment default. For example, a mortgage on a home is secured debt, with the home acting as the collateral. A vehicle loan is also a secured debt. Should the purchaser of the vehicle default on the payment, the bank or lender can repossess the car.

Unsecured Debt

Unsecured debt is often an area of focus for our 4 Pillars debt consultants working with people in Victoria. This is debt that is not backed by collateral. Examples of this type of debt include student loans, credit card purchases, and medical bills. As there is no collateral, interest rates on unsecured debt are typically much higher than that of secured debt.

At 4 Pillars, we provide assistance for both secured and unsecured debt issues. For more information, call us today at 866-690-3328.