What Is Unsecured Debt, and Why Is It a Problem?

Can I see into the future?

Thought for today:

As DA states, “Unsecured debt is any form of that not backed up by some form of collateral, like a house, car or other asset”.  Why is it problematic for compulsive debtors?

A member shares:

“Easy credit works like a drug for us.  Banks encourage us to use of credit, because they usually profit from it.  But for compulsive debtors, no one profits.

“My unsecured debt increased so slowly that I didn’t realize it until I did the math and realized I would never get out of debt by making minimum payments.

Unsecured debt is the most expensive kind:

When there is no risk of losing a tangible asset (such as the risk of a car getting repossessed)  but only an intangible one (like our credit rating taking a hit) we may selectively forget the negative effect of debt.  We’ll deny it, until it becomes too painful to ignore, when creditors aren’t getting their payments on time, and when late fees mount.

Banks charge a premium for this risk, but they delay the due date as an enticement.  One year of interest-free money leads to ten or more years of regrets and frustration.

Unsecured debt is “the dubious luxury of normal people”.  We need to avoid it at all costs.

Recovering compulsive debtors know the only good unsecured debt is a settled unsecured debt.


How has advertising enticed me this week to incur unsecured debt?  Am I dabbling in unsecured debt, using some lame excuse to not follow the proven principles of DA?  Am I really playing with fire if I do this?

Meditation for today:

There is no lack in life, except for our unbelief in the simple power of love available to us.  Only arrogance keeps us away from seeking spiritual growth.  Seek to live with integrity and honesty, and we will have all our needs met.

Affirmation for today:

“The truth is in the numbers.  Today I track my spending, my income, and retirement of any part of my outstanding debt.”

How to Get Out of Debt, Stay Out of Debt, and Live Prosperously*: Based on the Proven Principles and Techniques of Debtors Anonymous

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