Unsecured debt
Unsecured debt refers to any debts that are not backed by assets. Examples of unsecured debts include credit card and store card debts and personal loans.
Unsecured debt is opposed to a secured debt, such as mortgage or motor vehicle loan, in that secured debts are secured by the assets purchased through the loan. In the case of a home loan, the asset backing the mortgage is the home or investment property. In the case of a secured motor vehicle loan, the asset backing the loan is the motor vehicle. If a borrower defaults on a secured loan, the lender has the right to the assets backing the loan. With unsecured debts however, the lender has no right to any of the assets purchased with the borrowed money. So, if you default on your credit card debt for example, the credit card company has no right to anything bought using that credit card.