An unsecured debt is a debt where there is no collateral. Unsecured debts include medical bills, credit cards, department store cards, personal loans, collection accounts, student loans, amounts remaining after foreclosure or repossession, and bounced checks. There are a few creditors who will never compromise, but most will take a less­than­full payment as settlement­in­full to close a troublesome account. (Utility companies, however, rarely settle for less than the full balance.)