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What is the difference between secured debt and unsecured debt?  E-mail

An Unsecured Debt generally occurs when you make a promise to pay a creditor. This type of debt does not involve any assets. The most common types of unsecured debts are: credit cards and personal loans.


A Secured Debt is a loan that is backed by an asset or some type of collateral, such as a house or an automobile. If you fall behind on payments on this type of debt, the lender has the ability to repossess the asset.

 
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