Secured Debt
Definition
Debt that is connected to a specific piece of property the creditor can take back if there is a payment default.
Learn more about "Secured Debt"
For personal property, this is known as a repossession. If the debt is secured by real property, like a house or land, it's called a foreclosure. The property is referred to as the "collateral" and the security interest the creditor holds is known as a "lien."
The most common types of secured debt are car loans and home mortgages.
