In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment.

Whats the meaning of unsecured?

: not protected or free from danger or risk of loss : not secured unsecured cargo unsecured funds an unsecured loan.

What is an example of an unsecured debt?

Common types of unsecured debt are credit cards, medical bills, most personal loans, and student loans*. These debts help you do something (buy items, pay your doctor, get an education), but they are not backed by a specific asset. ... To compel payment, the creditor has to sue you and get a judgment against you.