debts and collateral
What is the difference between secured and unsecured debt? All of my debt is unsecured credit card debt .I lost my job and don’t have an income at this time. It is has been 6 months and still I can’t find work. I moved back in with my parents and stored my furniture after losing my apartment. My stuff is at a storage place. It is not expensive stuff .Just what a 24 year old guy would have. My father thinks because my debt is on credit cards they won’t take it. I have lots of debt and they want their money . At the moment the only thing they could possibly get is my stuff . This secured and unsecured debt is hard to understand .I didnt put my stuff up as collateral .Does that mean it would be hard for them to seize it. I am not planning on hiding it . They can have it if they want . I am just not going to let them just take it without a court order .
Secured debt means you have pledged something as collateral, such as pledging your car as security for a car loan, or your house as security for a mortgage. Credit card purchases are generally unsecured debts. The only way for an unsecured creditor, such as a credit card company, to get your stuff would be for them to get a court order, which is very unusual.
Once you have an income, I suggest you contact a credit counsellor or bankruptcy trustee if you find you can’t make payment arrangements directly with the credit card companies.