: Defaulting on an unsecured line of credit When I have an unsecured line of credit, it is not backed by any assets I hold (e.g:car). So if I fail to pay it back because I lose my job, how will the bank get its money back?

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The bank will sell your debt to a collection agency, that will then follow you everywhere you go and demand payment. They will put a negative notice on your credit report preventing you from getting any new credit, and might sue you in court and take over some or all of your assets through court judgement.