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]
Statesboro
Statesboro is the largest city and county seat of Bulloch County, Georgia, United States,[5] located in Southeast Georgia. A college town, Statesboro is best known as the home of Georgia Southern University, a Carnegie Doctoral-Research University.
As of 2015, the Statesboro Micropolitan Statistical Area, which consists of Bulloch County, had an estimated population of 72,651.[6] The City itself had a population of 28,422 in the 2010 census.[7] The City had an estimated 2015 population of 30,721.[8]
The city was chartered in 1803, starting as a small trading community providing the basic essentials for surrounding cotton plantations. This drove the economy through the 19th century, both before and after the American Civil War.
In 1906, Statesboro and area leaders joined together to bid for and win the First District A&M School, a land grant college that eventually developed as Georgia Southern University in 1990. In 1908, Statesboro sold more cotton bales than did Savannah, Georgia, but the boll weevil infestation of the 1930s required a shift to tobacco as a crop. Statesboro inspired the blues song “Statesboro Blues“, written by Blind Willie McTell in the 1920s, and covered in a well-known version by The Allman Brothers Band.[9]
In 1801, George Sibbald of Augusta donated a 9,301-acre (37.64 km2) tract for a centrally located county seat for the growing agricultural community of Bulloch County. The area was developed by white planters largely for cotton plantations, worked by slave labor. In December 1803, the Georgia legislature created the town of Statesborough. In 1866 the state legislature granted a permanent charter to the city, changing the spelling of its name to the present “Statesboro.”
During the Civil War and General William T. Sherman’s famous March to the Sea through Georgia, a Union officer asked a saloon proprietor for directions to Statesboro. The proprietor replied, “You are standing in the middle of town,” indicating its small size. The soldiers destroyed the courthouse, a crude log structure that doubled as a barn when court was not in session. After the Civil War, the small town began to grow, and Statesboro has developed as a major town in southeastern Georgia. Many freedmen stayed in the area, working on plantations as sharecroppers and tenant farmers.