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]
Oroville
Oroville is the county seat of Butte County, California, United States. The population was 15,506 at the 2010 census, up from 13,004 in the 2000 census. Oroville is considered the gateway to Lake Oroville and Feather River recreational areas. The city of Oroville has recently annexed two locations in South Oroville, areas A and B, which have a combined population of 2,725 people. The U.S. Census Bureau estimated the population of the city to be 17,996 as of January 1, 2016, up 1,908 people or 11.9 percent since 2010. The Berry Creek Rancheria of Maidu Indians of California is headquartered here.
Oroville is located off of State Route 70, and is in close proximity to State Route 99, which connects Butte County with Interstate 5. Chico, California is located about 25 minutes north of the city, and Sacramento lies about an hour south.
Oroville is situated at the base of the foothills on the banks of the Feather River where it flows out of the Sierra Nevada onto the flat floor of the Sacramento Valley. It was established as the head of navigation on the Feather River to supply gold miners during the California Gold Rush.
The town was originally called “Ophir City”, but the name was changed to Oroville when the first post office opened in 1854 (“oro” is “gold” in Spanish).[6] The City Of Oroville was incorporated on January 3, 1906.
Gold was found at Bidwell Bar, one of the first gold mining sites in California, bringing thousands of prospectors to the Oroville area seeking riches. Now inundated by the waters of enormous Lake Oroville, which was filled in 1968, Bidwell Bar is memorialized by the Bidwell Bar Bridge, an original remnant from the area and the first suspension bridge in California (California Historical Landmark #314). In the early 20th century the Western Pacific Railroad completed construction of the all-weather Feather River Canyon route through the Sierra Nevadas giving it the nickname of “The Feather River Route”. Oroville would serve as an important stop for the famous California Zephyr during its 20-year run. In 1983, this became a part of the Union Pacific Railroad as their Feather River Canyon Subdivision. A major highway, State Route 70, roughly parallels the railroad line winding through the canyon.