Whats the difference between unsecured versus secured debt?
Simply put, unsecured debt is money owed without collateral. Some examples of unsecured debt might include: • Credit cards • Lines of credit • Personal or signature loans • Medical bills The other type of debt people usually have is called secured debt. Secured debt is money that was borrowed with a condition that if you fail to make your payments one (or more) of your possessions may be seized and sold by the secured creditor. Some examples of secured debt might include: • Mortgage(s) • Car loan/lease • Financing contract (e.g.