Search results
Results from the WOW.Com Content Network
Creditors can be broadly divided into two categories: secured and unsecured. A secured creditor has a security or charge over some or all of the debtor's assets, to provide reassurance (thus to secure him) of ultimate repayment of the debt owed to him. This could be by way of, for example, a mortgage, where the property represents the security.
The counterparty is called a creditor. When the counterpart of this debt arrangement is a bank, the debtor is more often referred to as a borrower. If X borrowed money from their bank, X is the debtor and the bank is the creditor. If X puts money in the bank, X is the creditor and the bank is the debtor. It is not a crime to fail to pay a debt.
In the worst of cases, your creditor may send the account to collections. Examples of unsecured debt. Credit cards: These are a type of revolving debt that allows you to spend as you go. There are ...
Examples of unsecured debt. Credit cards and most personal loans are the most common types of unsecured debt. Although lenders typically charge higher interest rates on these types of debt, there ...
The debtor is in debt $10K to the secured creditor and $2000 to the unsecured creditors. Assume the debtor defaults and his only asset is the automobile. The dealership can repossess the auto and sell it to satisfy its debt. Two things can happen here: 1) The dealership sells the collateral (car) for more than the amount of the debt (let's say ...
In setting up a debt management plan (DMP), the agency will work with your creditors on your behalf and roll your unsecured debts into one monthly payment. By adhering to a DMP, you may avoid ...
For example, a tenant who writes a rent cheque to a landlord would enter a credit for the bank account on which the cheque is drawn, and a debit in a rent expense account. Similarly, the landlord would enter a credit in the rent income account associated with the tenant and a debit for the bank account where the cheque is deposited.
Debt consolidation loan: This is a type of personal loan. Some loans are secured , meaning you need collateral in exchange for funds, but most are unsecured. Each loan comes with its own repayment ...