WHAT IS MEANT BY SECURED AND UNSECURED DEBT?
Secured debt is debt where the creditor has a security interest in the property to guarantee payment. For example, a car loan is a debt secured by the car. If you don’t pay the debt, they can repossess your car. A mortgage is another example of a secured debt, as it is tied to your home. Unsecured debt is debt like credit cards, medical bills, and personal loans. These debts are not tied to a tangible item.
