debt

Understanding Debt – The Fundamental Principals, Purpose, and Value of Debt Explained

Debt has plagued everything American for the last few years. However, debt has enabled and fueled the fantastic prosperity and success of everything American for over a century.

America, thus Americans, currently have financial obligations (debt) at levels well into the trillions. If this were not scary enough we are increasing that amount daily. Even worst the rate at which we obtain more debt is speeding up. 

Homeowners, Consumers, Business Owners and Debt

Consumers have financed everything from cars, flat screen TV’s, to jeans, and even the small miscellaneous items that we purchase and over pay the convenience stores for the pleasure.
Then, of course, the American homeowner is deep in debt via their mortgage.

This spending has been a great help to profitable businesses everywhere. Also by borrowing capital business owners are able to expand their business and become even more profitable.

Fundamentals of Debt

Debt is a financial obligation owed by a borrower to a creditor or lender.

Debt can take on many shapes and forms and the cost for debt ranges widely. This being said debt can be grouped into one of two categories.

There are two general categories that debt falls into;

  1. Unsecured
  2. Secured

Secured Debt

Debt that is considered secured, is debt that is backed or assured by an asset.

This asset is given to the lender in the event that the borrower is unable to meet the obligations outlined in the original terms of the debt agreement.

Examples of Secured Debt

  • Mortgage debt
  • loans backed by a valuable asset
  • Margin Account with a Brokerage House

Unsecured Debt

Debt that is considered unsecured, is debt that is not backed by any sort of asset. Unsecured debt is loaned on the good faith that the borrower will pay back the debt as agreed by the terms of the loan agreement.

Examples of Unsecured Debt

  • Credit Card Debt
  • School Loans
  • Small Personal Bank loans
  • SBA Ensured Loans

 

Recent Widespread Debt Problems

Debt help and assistance is in high demand amongst the middle-class consumers of the American economy.

It’s no secret that the American consumer, the American homeowner, and the entire American economy is currently feeling the pressures of debt.

Levels of bankruptcy, mortgage default, foreclosure, and missed credit card payments are all at all-time highs. America has a debt problem.

The good news is that there is debt assistance available to homeowners and consumers of both secured debt (mortgage help) and unsecured debt (debt settlement or debt consolidation). 

We encourage folks that are in financial trouble due to a hardship and high levels of debt you have obtained over the years to consider seeking some sort of debt help and debt assistance that is appropriate for your unique situation.

Types of Debt Help and Assistance

There are two main categories of debt solutions.

  1. Credit card debt solutions and any other unsecured debt help
  2. Mortgage-related debt solutions

Examples of Unsecured Debt Help

Examples of Secured Debt Help

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