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]

Mesquite

Mesquite is a city in Clark County, Nevada, United States, adjacent to the Arizona state line and 80 miles (130 km) northeast ofLas Vegas on Interstate 15. As of 2015, the United States Census estimates that the city had a population of 17,496.^[5] The city is located in the Virgin River valley adjacent to the Virgin Mountains in the northeastern part of the Mojave Desert. It is home to a growing retirement community, as well as several casino resorts and golf courses.

Mesquite was settled by Mormon pioneers in 1880, who called it Mesquite Flat. The community was finally established on the third attempt after having been flooded out from the waters of the Virgin River. The name was later shortened to Mesquite, and the city was incorporated in May 1984. Mesquite, like nearby Bunkerville, had its origins in farming. The Peppermill Mesquite casino, which opened in the 1970s, drove Mesquite’s diversified economy. [The Western Village Travel Plaza opened in the 1950s, later owned by the Peppermill [1].] The city incorporated in 1984 and established a master development plan during the early 1990s.^[2] In the mid-1990s, more casinos opened.^[6] By 2006, Mesquite was one of the fastest-growing small towns in the United States, though the late-2000s recession led to the closure of both the Mesquite Star and Oasis (formerly The Peppermill) casinos.^[2]

Mesquite occupies the northeast corner of Clark County and extends north into the southeast corner of Lincoln County. The eastern border of the city is the Arizona state line. The city is in the Virgin River valley, occupying the northern side of the river. The city lies adjacent to the Virgin Mountains in the northeastern Mojave Desert near the southern mouth of the Virgin River Gorge.