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What is the difference between a secure debt and an unsecured debt?

April 26, 2017debt difference Secure unsecured debt

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What is the difference between a secure debt and an unsecured debt?

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10 Posted

A Secure debt is a debt by which collateral is used as a secondary choice of repayment if you fail to meet your monthly obligations. Secured loans are home loans, auto loans, and other recreational vehicles like motorbikes or RV’s. An unsecured loan is a loan based on your willingness to pay back the loan with out having to sacrifice any type of collateral. Examples of unsecured loans are credit cards, signature loans, department store cards, and medical bills. An unsecured debt relies only upon your promise to repay.