👉 Unencumbered, also known as "unburdened," is a phrase that describes someone who has no debt or obligation to pay. It implies that they have not been burdened by debts and are free from any financial obligations. In the context of personal finance, it can refer to a situation where an individual has no mortgage payments or credit card balances outstanding on their credit report. This is often seen as a positive sign for someone's financial health and stability.