What exactly is unsecured debt? “Unsecured” debt means that your debt is not “secured” (or backed up) by any collateral or property. If you own property your creditors cannot cause a lien against it or take it away for the purpose of paying of this type of debt.
On the other hand, secured debts are always tied to underlying assets, and any collateral such as a mortgaged home or a partially paid-for car can be taken away if you fall behind on your payments.
All debt accumulated on credit cards or lines of credit, store cards, medical bills, etc., is unsecured, and reportedly most consumers on average have close to $10,000 in unsecured debt (and often much more). In an economic downturn where people lose their jobs, they have little chance of paying off this debt. After a while the mounting interest and late charges on missed payments accumulate to the point where bankruptcy seems the only way to go.
At first, unsecured-debt creditors will try to collect through collection agencies, phone calls, etc., if you are not able to repay the overdue debt in time. However, they don’t have a right to your tangible assets and they cannot take back your groceries or cell phone to pay off what you owe. In some cases, though, the lender may sue you and try to get a judgment to have your wages garnished or put a lien on whatever assets you do have until the debt is paid.
If you choose to file bankruptcy, what happens to that unsecured debt? If you have mostly credit card debt and perhaps some other unsecured loans, bankruptcy is very good at wiping out these types of debts. However, bankruptcy is not necessarily the best way to go in view of what it will do to your future ability to obtain credit, buy a home or a car, or get a job. And you may not qualify for Chapter 7 bankruptcy if your earnings are above your state’s median.
A more desirable way to obtain debt relief would be through debt settlement. Choosing this path, even though completing it may take a while, avoids all the negatives associated with bankruptcy. Contact Fast Track and ask about their debt settlement program. Their professional debt negotiators will work with you and your creditors to settle your debt.
Debts are negotiated in an orderly manner as agreements are reached with each of your creditors subject to your approval. The program takes about 12-36 months and is completed when all debts in the program have been settled. Fast Track’s Debt Settlement Program works best for consumers in need of real debt help to settle their debts. We negotiate with your creditors and encourage them to accept a one-time, discounted settlement payment. The Fast Track program provides ethical and dedicated service to help you achieve your goals.
When we start your plan we establish an affordable monthly payment which is deposited in a settlement account in your name. Once you have the required funds in your settlement account, we will contact your creditors and make settlement offers. We will continue to work with them until all debts in the plan have been settled. Fast Track’s goal is to settle all debts in the plan for 40%-60% of what you owe.
Contact us, using our secure connection. Fast Track respects your privacy. Use of our Site is also subject to the Terms and Conditions of our Privacy Policy. See Fasttrackdebtrelief.com's privacy policy for additional information regarding your privacy on this website.