YOUR CREDIT CARD OUTLET

secured vs. unsecured debt?

I had to take 2 law classes when I was in college. At which time…we discussed secured vs. unsecured debt. Secured debt is where you have to put something up…like the car or house that they would come take if you didn’t make your payments. Unsecured debt is where you don’t put something up and the lender has no recourse if you default…as in the case of Credit Cards. A riskier situation for lenders….thus the higher interest rates. So now I don’t understand how they are legally able to go to court and get these judgements against you guys. My first defense would be that this was unsecured debt, they have no recourse against me. If any of you guys are in this situation I would be contacting an attorney about this idea. Please let me know if the unsecured debt issue has come with you guys and let me know what happened.

You are confusing the definition of unsecured and non-recourse. Unsecured DOES NOT mean non-recourse. Those are two COMPLETELY different legal terms. Under what legal theory or doctrine does it state that since a debt is unsecured it is also non-recourse? Just because a debt is NOT secured, does not mean that it is NOT a legal obligation. Mortgages (secured debt) in 13 states are non-recourse….how do you explain that?? In fact, the overwhelming majority of debts are unsecured. Student loans for example are unsecured. Just TRY and use that argument against the federal government. Even the judge will laugh you out of court!! Your idea is incredibly flawed in your lack of understanding of VERY basic legal terms. You should have paid better attention in college.

Dealing with Credit Card Debt