| 1. | to impede or hinder; hamper; retard: Red tape encumbers all our attempts at action. |
| 2. | to block up or fill with what is obstructive or superfluous: a mind encumbered with trivial and useless information. |
| 3. | to burden or weigh down: She was encumbered with a suitcase and several packages. |
| 4. | to burden with obligations, debt, etc. |
Unencumbered
Property that is not subject to any creditor claims or liens.
Investopedia Commentary
For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. Also, if a person were to buy stocks with cash rather than on margin, it is unencumbered.
Related Links
The Importance of Your Credit Rating
Margin Trading Tutorial
See also: Credit, Interest, Lien, Line of Credit, Margin, Mortgage, Open End Credit
unencumbered