WHAT TYPE OF DEBT QUALIFIES FOR DEBT SETTLEMENT?
It’s important that you understand the difference between Unsecured Debts (which we CAN help you with) and Secured Debts (which we can’t help you with).
- Secured Debt is a loan where the creditor retains a security interest in any item of real or personal property. If you fall behind on payments, the lender can repossess the property. You may also remain liable for any deficiency balance owed. Examples of secured debt is your mortgage or car lease payment.
- Unsecured Debt generally arises out of a contract you enter into with a creditor, which enables you to obtain goods or services on credit in exchange for your promise to pay the creditor back. This debt is NOT secured by any real or personal property. As such, if you fall behind on these debts the lender cannot repossess any tangible property, and can only initiate legal proceedings against you to attempt to collect on the debt. The most common types of unsecured debts are: credit cards, medical or collection debt, unsecured personal loans, deficiency balances on vehicles already repossessed, and some unsecured business debt.