Unsecured debt is known as debt against which none of the collateral has been kept or it can be said as general borrowing also. Any sort of debt received by just singing a paper also considered as unsecured debt. Unsecured debt is generally given by the retail merchants or lender upon which they usually charges higher interest rate than secured personal loan. This type of loan is opted by most of bad credit history people that is why, unsecured bad credit personal loans carries higher rate of interest as they do not hold any collateral against its capital lend. Whereas, secured personal loans are given by financial institutions mostly against any collateral.
For more information visit http://www.prnewswire.com/news-releases/bad-credit-personal-loans-network-of-new-lenders-launched-by-loansnet-179655931.html