Unpaid Debts: 3 Signs That It’s Already Hurting Us
Debt is an obligation with a promise to return a sum of money borrowed from another person (or institution) whether as a secured or unsecured loan.
Secured debts refer not only with the borrower’s promise-to-pay, but on top of it, the debtor posts some assets (personal or real) as surety for the loan contracted, otherwise known as collateral. This type of loan is always in a form of mortgage. Thus, the lender runs after the collateral asset in the event the borrower fails to pay his debt.
On the other hand, unsecured debts refer to a loan not secured with any collateral coming from the borrower. The lender has no right to forfeit any of the borrower’s assets if he defaults to repay his debt.
Contracting a loan may be the easiest and the most convenient way to fund our needs. However, things may turn complicated and serious when payment of the same becomes impossible to make. Unpaid debts may hurt us economically, emotionally and mentally. Here are three signs that our debt is already hurting us: