Personal Loans
In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment.
In the event of the bankruptcy of the borrower, the unsecured creditors will have a general claim on the assets of the borrower after the specific pledged assets have been assigned to the secured creditors. The unsecured creditors will usually realize a smaller proportion of their claims than the secured creditors.
In some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able (and in some jurisdictions, required) to set-off the debts, which actually puts the unsecured creditor with a matured liability to the debtor in a pre-preferential position.
Under risk-based pricing, creditors tend to demand extremely high interest rates as a condition of extending unsecured debt. The maximum loss on a properly collateralized loan is the difference between the fair market value of the collateral and the outstanding debt. Thus, in the context of secured lending, the use of collateral reduces the size of the “bet” taken by the creditor on the debtor’s creditworthiness. Without collateral, the creditor stands to lose the entire sum outstanding at the point of default, and must boost the interest rate to price in that risk. Where high interest rates are considered usurious, unsecured loans are either not made at all, or are made by loan sharks unafraid of the law.
Oftentimes Unsecured Loans are sought out in cases where additional capital is required although existing (but not necessarily all) assets have been pledged to secure prior debt. Secured lenders will more often than not include language in the loan agreement that prevents debtor from assuming additional secured loans or pledging any assets to a creditor.
Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others.[1] This commonly refers to a personal finance process of individuals addressing high consumer debt but occasionally refers to a country’s fiscal approach to corporate debt or Government debt.[2] The process can secure a lower overall interest rate to the entire debt load and provide the convenience of servicing only one loan.[3]
Huntingdon
Huntingdon is a borough in (and the county seat of) Huntingdon County, Pennsylvania, United States. It is located along the Juniata River, approximately 32 miles (51 km) east of Altoona and 98 miles (158 km) west of Harrisburg. It is the largest population center near Raystown Lake, a winding, 28 miles (45 km) long flood-control reservoir managed by the U. S. Army Corps of Engineers. The borough is located on the main line of the Norfolk Southern (formerly Pennsylvania) Railroad, in an agricultural and outdoor recreational region with extensive forests and scattered deposits of ganister rock, coal, fire clay, and limestone. Historically, the region surrounding Huntingdon was dotted with iron furnaces and forges, consuming limestone, iron ore and wood (for charcoal production) throughout the 19th century. Dairy farms dominate the local agriculture. The town is a regular stop for the Amtrak passenger service which connects Harrisburg with Pittsburgh.
Huntingdon is home to Juniata College, a private liberal arts college founded by members of the Church of the Brethren in 1876, and branch campuses of DuBois Business College and Penn Highlands Community College. In adjoining Smithfield Township (across the Juniata River) are the regional headquarters of the Pennsylvania Game Commission (Southcentral Division) and the Bureau of Forestry (Rothrock State Forest). State Game Lands 322 extends north from Huntingdon Borough in the direction of Petersburg. Public parks are the George N. Weaver Memorial Park (ball field and playground) at the end of 16th Street, Portstown Park along the Juniata River, and Blair Field bordering Standing Stone Creek. Historic Blair Park, directly across the same stream, is owned and managed by a nonprofit group; it contains a gazebo, and a level hiking and biking trail. A vintage chapel within the park is used by the congregation of Epiphany of Our Lord Orthodox Church.