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]
Newark
Newark (/ˈnuː.ərk/[23] or also locally /nʊərk/[24]) is the most populous city in the U.S. state of New Jersey and the seat of Essex County.[25][26] As one of the nation’s major air, shipping, and rail hubs, the city had a population of 277,140 in 2010, making it the nation’s 67th most-populous municipality, after being ranked 63rd in the nation in 2000.[14] For 2015, the Census Bureau’s Population Estimates Program calculated a population of 281,944, an increase of 1.7% from the 2010 enumeration,[13] ranking the city the 70th largest in the nation.[27] Newark is the second largest city in the New York metropolitan area, located approximately 8 miles (13 km) west of lower Manhattan.
Settled in 1666 by Puritans from New Haven Colony, Newark is one of the oldest European cities in the United States. Its location at the mouth of the Passaic River (where it flows into Newark Bay), has made the city’s waterfront an integral part of the Port of New York and New Jersey. Today, Port Newark-Elizabeth is the primary container shipping terminal of the busiest seaport on the American East Coast. In addition, Newark Liberty International Airport was the first municipal commercial airport in the United States, and today is one of its busiest.[28][29][30]
Several leading companies have their headquarters in Newark, including Prudential, PSEG, Panasonic Corporation of North America, Audible.com, IDT Corporation, and Manischewitz. A number of important higher education institutions are also located in the city, including the Newark campus of Rutgers University (which includes law and medical schools and the Rutgers Institute of Jazz Studies); the New Jersey Institute of Technology; and Seton Hall University’s law school. The U.S. District Court for the District of New Jersey sits in the city as well. Local cultural venues include the New Jersey Performing Arts Center, Newark Symphony Hall, The Prudential Center and the Newark Museum.
Newark is divided into five political wards; the East, West, South, North and Central wards and contains neighborhoods ranging in character from bustling urban districts to quiet suburban enclaves. Newark’s Branch Brook Park is the oldest county park in the United States and is home to the nation’s largest collection of cherry blossom trees, numbering over 5,000.[31][32][33][34]