The difference between a secured and unsecured debt is as follows: A secured debt is any debt that is secured against an item. The company lending you the money will use your asset as security if you can’t repay your loan, that means your lender has the right to repossess your home or car.
An unsecured loan is when you borrow money from a lender and agree to make regular payments until it’s paid. This type of loan isn’t secured on any assets and so the interest rates tend to be higher.