Unsecured debt is a type of borrowing that is not backed by any collateral, meaning there is no specific asset that the lender can claim if the borrower fails to repay. This form of debt typically carries a higher interest rate than secured debt because it poses a greater risk to lenders. Common examples include credit card debt, personal loans, and medical bills, all of which impact an individual's financial health and repayment strategies.
congrats on reading the definition of unsecured debt. now let's actually learn it.