What is unsecured debt?
Almost everyone overspends from time to time and, as many residents of Florida have learned the hard way, it is all too easy to do when you have a credit card. You might make your purchases with the intention of paying them off at the end of the month. However, if you lose track of your expenditure or, for some reason, receive less money that month than you expected, your debts could begin to mount.
High-interest rates on borrowed money can quickly increase the amount owed. This is one of the primary concerns when it comes to credit cards. Some people then try to resolve the problem by borrowing in order to pay off their cards. This could mean taking out a loan or even remortgaging their property. Others choose bankruptcy and simply start again.
As this article on debt relief mentions, credit card debt is described as unsecured. This means that there is nothing for the lender to repossess in the event that you are unable to pay off your debts. However, this does not mean they cannot be problematic. The lender might decide to up your interest rate or even add a surcharge for late payments. If the amount continues to go unpaid, they may even choose to file a lawsuit against you.
When debt reaches an unmanageable level, things can seem fairly hopeless. However, all is not lost, and you should not give up. With the right guidance and support, you may be able to clear the majority of your debts and move on to the next chapter of your life. Moreover, you do not need to pursue this goal alone. An lawyer may be able to help you decide how best to clear your debts and might even be able to assist you with formulating a repayment plan and negotiating terms with creditors.