Unsecured loans, are monetary loans that are not secured against the borrowers assets. A loan is a type of Debt. This article focuses exclusively on monetary loans although in practice any material object might be lent In lending agreements collateral is a borrower's asset that is Forfeited to the lender if the borrower is insolvent—that is unable to pay back the principal and interest on A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation (usually but not always the payment of a debt

Contents 1 Credit card debt 2 Bank overdrafts 3 See also 4 References

Credit card debt

In 2002, the average American households with only one credit card had $9,000 in debt. ^[1] Credit card bills are meant to be repaid within a month; when they are not the balance to be paid is considered debt and the consumer is charged interest by the company issuing the card.

Bank overdrafts

When a customer withdraws more money than is in their bank account, the money owed to the bank is called a bank overdraft.

See also

• Asset
• Secured loan

References

In Business and Accounting, assets are everything owned by a person or company (all tangible and intangible property that can be converted into cash. A secured loan is a Loan in which the borrower pledges some asset (e

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