Unsecured debt refers to a type of borrowing where no collateral or asset is provided as security for the loan. This means that if the borrower fails to repay the debt, the lender has no legal claim on any specific property or assets owned by the borrower. Examples of unsecured debts include credit cards, personal loans, and some types of consumer finance agreements. Unlike secured debt, where missing a payment can result in the loss of an asset (such as a car or home), with unsecured debt, the lender's only recourse is to pursue legal action to recover the money owed.