fbpx

Unpaid Debts – 3 Signs That It’s Already Hurting Us

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:

Prev1 of 4Next

Leave a Reply

Your email address will not be published.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
Does not receive any data from API