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Secured vs. Unsecured Debt

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Credit Card Debt

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An unsecured debt that does not require collateral and often has high interest rates.

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Student Loan (Federal)

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An unsecured debt issued by the government to fund education, no collateral required.

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Business Loan

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Can be a secured or unsecured debt based on whether collateral is provided for the loan.

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Tax Lien Certificate

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A secured debt instrument issued by a government entity against a property owner who has not paid property taxes.

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Rental Agreement Debt

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An unsecured debt unless a security deposit is held as collateral.

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Personal Loan

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Can be a secured or unsecured debt, commonly used for personal expenses.

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Bridge Loan

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A short-term secured debt often used in real estate transactions.

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Utility Bill Debt

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Generally an unsecured debt as utilities service itself is not collateral.

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Peer-to-Peer Loan

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Can be secured or unsecured debt, dependent on the agreement between the borrower and the lender in the peer-to-peer network.

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Pawn Loan

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A short-term secured debt where personal property is used as collateral.

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Secured Credit Card

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A type of secured debt designed to build credit, requires a cash deposit as collateral.

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Construction Loan

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A short-term secured debt with the property under construction serving as collateral.

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Bail Bond Loan

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A secured debt where collateral is required to guarantee the appearance of the defendant in court.

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Home Equity Loan

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A secured debt where the borrower's equity in their home is used as collateral.

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Car Loan

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A secured debt with the purchased vehicle as collateral.

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Medical Debt

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An unsecured debt incurred due to healthcare expenses.

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Payday Loan

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A short-term, high-interest unsecured debt that is expected to be repaid with the borrower's next paycheck.

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Unsecured Line of Credit

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An unsecured debt that provides access to funds up to a certain limit without collateral.

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Title Loan

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A secured debt that requires vehicle ownership title as collateral.

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Mortgage

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A secured debt where the collateral is real estate property.

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