What’s the difference between unsecured debt and secured debt?
Unsecured debt isn’t tied to any collateral and includes things like credit cards, department store cards, and medical bills. These are the types of debts that are eligible for debt resolution through the Think Debt Relief program. Secured debt is tied to some form of collateral; it includes accounts like a home mortgage, a home equity line of credit, or a car loan. If you fail to make your payments and end up defaulting on a secured debt, the collateral guaranteeing that debt may be repossessed by your creditor. In the case of a home or car loan, for example, you could end up losing your house or your car. Unfortunately, secured debts aren’t eligible for debt resolution.
