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What is Secured and unsecured debt?

secured unsecured debt
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What is Secured and unsecured debt?

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Secured debt is money owed on a piece of property by a contract, such as an auto loan, mortgage, or court judgment.

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Note that if a secured creditor must sell the asset to recover, and the asset doesn’t generate enough $ to pay the debt (which includes all interest, penalties and costs of having to take that action), the deficiency is an unsecured debt, which will be able to be paid by process..having your other assets sold.

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