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]
Phoenixville
Phoenixville is a borough in Chester County, Pennsylvania, United States, 28 miles (45 km) northwest of Philadelphia, at the junction of French Creek with the Schuylkill River. It is located in the Philadelphia Metro Area. The population is 16,440 as of the 2010 Census.[3]
Originally called Manavon, Phoenixville was settled in 1732 and incorporated as a borough in 1849. In its industrial heyday early in the twentieth century, it was an important manufacturing center and it was the site of great iron and steel mills such as the Phoenix Iron Works, boiler works, silk mill, underwear and hosiery factories, a match factory, and the famous (and now highly collectible) Etruscan majolica pottery. Like many American towns and cities, Phoenixville owes its growth to its waterways. It is not only situated on the broad Schuylkill River, a historic thoroughfare to Native Americans and early settlers alike, but it is bisected by the fast-flowing French Creek, which was quickly harnessed for water power.
Much of this history was recognized by the creation of the Phoenixville Historic District, the largest National Register of Historic Places site in Chester County. The Black Rock Bridge, Gay Street School, and Schuylkill Navigation Canal, Oakes Reach Section are also listed on the National Register of Historic Places.[4]