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Whether managing personal finances or business finances, it is important to remember that your debt structure should be an accurate reflection of your ability to repay what debt you do incur. There are essentially two types of debt: secured and unsecured. Secured debt is debt tied to real property, such as a house, a car, etc. Unsecured debt comes into play with things purchased by credit card where there is no real property or items tied to the debt. Should you find yourself in a situation where your unsecured debt is overwhelming, consulting and researching debt reduction companies and assistance may be a good idea as an alternative to bankruptcy.