What is a secured debt versus an unsecured debt?

We only work with unsecured debts but many clients want to know exactly what “secured” means. Things like a car loan or mortgage are considered secured debts.

• A car loan or mortgage is considered a secured debt
• Unsecured debts are credit cards, personal loans, medical bills, rent payments
• Unsecured debts don’t have property security for the debt

With secured debts a creditor can collect it’s money by selling your car or home because the ‘car’ or ‘home’ is security for the debt. Unsecured debts are credit cards, personal loans, medical bills, rent payments or any debt which doesn’t have property as ‘security for the debt’.