Answer :
The example of unsecured debt from the options provided is:
A. Payday loan
Unsecured debt refers to debt that is not backed by collateral. In the case of a payday loan, it is typically a short-term, high-interest loan that is not backed by any specific asset. This means that if the borrower fails to repay the loan, the lender cannot automatically seize any collateral as they could with secured debts like a mortgage or a car loan.
In contrast, a mortgage is a type of secured debt where the house itself serves as collateral for the loan. Lawyer fees are typically considered a service provided and not a form of debt, and a car loan is also a form of secured debt where the car itself acts as collateral for the loan.
