secured debt
Asset-backed borrowing
Secured debt is a loan backed by collateral—property the lender can seize if the borrower defaults.
Mortgages and car loans are typical examples: fail to pay, and the bank takes the house or repossesses the vehicle.
The collateral reduces the lender's risk, usually resulting in lower interest rates than unsecured debt like credit cards.
- deficiency judgmentCourt order for remaining debt
- creditorOne owed money
- lienClaim securing debt
- borrowerOne who takes temporarily
- mortgageSecured home loan
home equity · underwater mortgage · property · debtor · promissory note · default · recovery rate · foreclosure · deed of trust · first lien · lender · collateral · repossession · consumer credit · business loans · real estate · delinquency · encumbrance
- debtcreditor, owe, debtor, lender, unpaid
- debtscar loan, student loan, loans, bank loan, personal loan
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- business debtbank loan, commercial loan, credit line, line of credit, loan
- Debt Termsbankruptcy, insolvency, delinquency, arrears, principal
- creditor priorityfirst lien, subordination, waterfall structure
secured debtunsecured debt
Borrowing without collateral
unsecured loan · unsecured credit · signature loan · personal loan · credit card debt