Unsecured Debt Legal Meaning and Definition

Here is a simplified definition of the legal term Unsecured Debt.

Unsecured debt (noun): A type of debt or financial obligation that is not protected or backed by any form of collateral or tangible asset. This means that if the borrower fails to repay the debt, the lender cannot directly claim any particular property or asset to compensate for the loss. Examples of unsecured debts may include credit card debt, student loans, and personal loans.