Almost every consumer in America somewhere owes some money to someone.  There are 2 basic types of consumer debt one being secured debt and the other being unsecured debt.

Secured debt is a debt that is tied to a specific piece of real or personally property.  Some common secured debt is homes and automobiles.  A house or car is considered property that you can offer as collateral to the lender for the amount of money you plan to borrow which guarantees repayment of this debt.

If you have no credit history or a bad credit history you may only be able to secure a loan with your property.  Secured debt usually have structured payment amounts and terms.  The downside to a secured debt is that you can lose your property if you cannot repay this debt.  If you file bankruptcy against your unpaid secured debt your property will be included in the bankruptcy.  When applying for a secured debt the only way to win is to repay this debt in full.

You also have unsecured debts this is the type of debt in which we can consolidate.  This type of debt is NOT tied to a specific piece of property.  The most common unsecured debts credit card debt and medical bills.  When you used a credit card to purchase your items or go see a doctor your property will not be taken from you if you do not pay the creditor or the doctor. 

Unlike secured debt unsecured debt usually comes with flexible payment amounts and terms and credit limits.  If you can not pay off your unsecured debt they are often may be released to bankruptcy.  Overspending on credit cards is the leading cause of uncollected unsecured debt.

Many times we do not see the signs of a financial troubles until it is too late.  Here are 5 warning signs which indicate that your credit debt may be getting out of control:

1. Do you pay your bills late?
2. Do you transfer balances from one account to another in order to obtain lower interest rates and lower payments.
3. Depend on overtime to work to cover monthly payments.
4. Hope that checks that you wrote do not clear the bank before payday.
5. Borrow from your friends and relatives to cover basic living expenses.

Everyone has their own theory when it comes to getting out of debt.  Getting out of debt takes discipline, planning and sometimes significant changes to your spending habits.  What you can do is apply to our debt consolidation service and we will be able to assist you with your unsecured debt and get you on the right path to financial freedom.

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