How to Sell Your Unsecured Note

Unsecured debt is any type of debt that does not require any assets to be put down for security of payment. Unsecured debt notes include credit cards, student loans, medical bills and rent expenses. If you are unsure about how to tell the difference between secured debt and unsecured debt, ask yourself if the lender can take anything from you if you do not pay. If the answer is no, you have unsecured debt. Since unsecured debts are smaller amounts compared to secured debt like mortgages and car leases, you can sell unsecured debt to a collection agency.

Compile a list or spreadsheet of all the information regarding your debtors. Include the name, the address, phone number and contact name. Include any notes about the outstanding debt due and how long the debt has been held.

Research and study the different styles of collection agencies. Some agencies agree to pay a flat percentage amount of the debt owed and you will not have any influence in what happens with the unsecured debt. Other agencies collect and keep a percentage before forwarding you the rest of the amount.

Locate and contact several collection agencies in your area that use your preferred collection method. Get quotes from them regarding the debt purchase. If you can bundle several debts together into a packaged deal, the agency may be enticed to pay a higher rate for your unsecured debt.

Examine the terms given to you by the collection agency. Before you agree to sell your unsecured debt notes to the agency, make sure you understand everything that is expected from you and exactly what the collection agency will do for you in return.

Transfer all of your debt records to the agency as agreed upon. Make copies of the agreement for yourself beforehand. If a debtor happens to contact you after selling the unsecured notes to the agency, refer the debtor to the contact information of the collection agency.


  • Instead of selling your unsecured debt to a collection agency, first consider using credit card counseling services if you have fallen behind on your payments.

    If your unsecured note comes in the form of a credit card, you can sell your unsecured credit card debt to the company that provides your car or home loan.


  • Make sure you understand that once your unsecured notes are sold, you will not be able to collect from the debtor.