Secured debt
Debt, arrears & collectionsDebt that is backed by an asset, such as a house or car.
Overview
Secured debt typically has lower interest rates but higher risk.
If you do not pay, the lender can repossess the asset.
Why it matters
- It can carry serious consequences if missed.
- It is often used for large purchases.
- It affects affordability and credit profile.
FAQs
Is a mortgage secured debt?
Yes. The property is used as security for the loan.
Does secured debt affect my credit score?
Yes. Payments and account status are reported.
Related terms
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