« Helping You With Debt Issues | Main | Is Debt Relief a Priority For You? »
July 13, 2006
Secured Vs Unsecured Debt
There is secured debt and unsecured debt. Secured debt is debt covered by collateral. It includes mortgages and car loans—big ticket items that can be repossessed if we fail to make payments.
Unsecured debt is credit card debt, money borrowed from Mom and Dad, and unpaid bills. Unsecured debt is basically any money borrowed in cash or on credit without collateral.
The high price of homes and cars makes it impossible for most of us to pay for them with cash. We make the distinction between unsecured debt and secured debt. Secured debt is, for most of us, unavoidable. We accept secured debt as a living expense (while always living within our means). Since most of us choose to make paying secured debt a priority, it can be the basis of a good credit record.
Today I will accept that secured debt is a part of life.
Trackback Pings
TrackBack URL for this entry:
http://www.crediteria.com/cgi-bin/mt/mt-t.cgi/83