Why is Unsecured Debt Bad?
Unsecured debt, like a personal loan, is a very straightforward way to borrow money. You received an amount of money from the lender and you agree to pay that money back in instalments along with any interest.
Some of the negatives that are associated with unsecured loans are that, since they are not secured against any assets, the interest rates tend to be higher, meaning you will pay back more in the long run.
If you are late with your payments you can incur charges on your accounts and your credit rating can be negatively affected.
To find out more, take a look at our Unsecured Debt page.