What is secured vs. unsecured debt?
Secured debt refers to debt for which another asset serves as collateral. Common examples of secured debt include car loans, a home equity loan or credit cards that
are secured through a bank account. In the case of secured debt, creditors can resort to selling the underlying asset to achieve full repayment of the debt. Debt Relief Options™ is able
to negotiate only unsecured debt as part of a debt settlement program. In some cases, a debt that starts off as secured may end up becoming an unsecured debt. For example,
an outstanding car loan balance remains even after the car is repossessed. In that case, what started as a secured debt is now an unsecured debt and may become negotiable.
Debt Relief Options™ routinely negotiates agreements on credit card debt, personal loans and outstanding medical bills.
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