• Home
  • About
  • Debt Help Video Tips
  • Debt Help Book Store
  • Contact Us

Debt and Credit

Resources, Tips, & Advice

  • Featured Articles
  • Debt & Credit Free
  • Debt & Credit Information
  • Debt & Credit Tips
  • Debt Help News

Unsecured Credit – You Still May Lose More Than You Gain


Although there are obvious pitfalls to taking out a mortgage or a new car loan which are not a problem with unsecured credit, there is no doubt that unsecured borrowing can still be a very risky endeavor. Just because the lender cannot repossess your possessions to make good on the loan, this does not mean that you cannot be put in a very risky situation financially. The first thing that will happen when you miss a payment on a loan or credit card is that you will go into the company’s “collections” file and they will pursue you for payment.

As well as entering the collections department, you will find that your credit record will contain the information of your missed payment. There are certain kinds of borrowing that are available to people with perfect credit ratings, including loans that have extremely low interest rates. A black mark on your credit rating will be enough to disbar you from ever qualifying for such lending, and will mean that any credit you do get will be very much on the lender’s terms.

Borrowing money can be the solution to a problem in a number of situations, but it is important to realize that without the continued means to pay the money back you will be placed in a very troublesome situation. Sometimes the best way to deal with the pitfalls of unsecured lending is just not to borrow at all. It may make for a difficult situation, but it will be one without unpleasant letters and phone calls.

  • Facebook
  • Twitter

Filed Under: Debt & Credit Tips

https://www.youtube.com/watch?v=72RAKcito3k
  • Email
  • Facebook
  • Pinterest
  • Twitter

Recent Posts

  • Should You Take Out Consumer Or Community Debt? – Bankrate July 9, 2025
  • Why so many Chinese are drowning in debt – The Economist July 8, 2025
  • When To Use A Personal Loan To Pay Off Credit Card Debt – Bankrate July 6, 2025
  • Watch Life Insurers Boost Private Debt Investments – Bloomberg July 3, 2025

Copyright © 2025 · Designed by Amaraq Websites · Privacy Policy · Affiliate Disclosure