When talking to debt companies, you may hear the words "Unsecured Debts Only" frequently. It can be confusing at times when you are getting bombarded with new terms and need to make sense of all of them. This should clear up the confusion.

Simply put, unsecured debts are usually debts which have no claim on personal property or any other physical item you own. You are contractually obligated to pay the debts on unsecured debts, and the creditors have every right to take legal means to collect the debts, but they usually cannot seize property of yours as is the case with "secured debts".

The types of collection methods can range quite a bit, but the most common way they force you to pay money back is to garnish your wages through a judgement.

Examples of Unsecured Debts are:

- Credit Cards
- Personal Loans without collateral attached
- Student Loans
- Debt Consolidation Loans not attached to a house
- Medical Bills
- Old Utility/Phone bills where the line has been disconnected already (new utilities will be shut off if not paid)

Normally debt arbitration and debt negotiation companies only accept Unsecured Debts, so when applying for these types of services make sure thatyou know which of your debts are unsecured.

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