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Which type of debt is the least attractive for a consumer

A) Unsecured debt
B) Secured debt
C) Mortgage debt
D) Lease debt

User Rolon
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1 Answer

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Usually, unsecured debt is least attractive for consumers because it carries a higher interest rate than the others. In secured debt, including a mortgage, the lender has collateral that can help offset the cost of a loan if the consumer defaults; therefore it is less risky for the bank and they charge a lower rate. In an unsecured debt, like credit cards, the bank has no collateral to collect and the debt is more risky for them.

User Mooing Duck
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