An unsecured debt is typically more risky to a creditor than a secured debt.

Name: An unsecured debt is typically more risky to a creditor than a secured debt.
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An unsecured debt is not backed by collateral, whereas a secured debt is. This means that if the borrower defaults on the loan, the creditor may not have any assets to recover their losses. As a result, an unsecured debt is typically more risky to a creditor than a secured debt.

An Unsecured Debt Is Typically More Risky to a Creditor