What Is A Secured Debt?

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What Is A Secured Debt?

A debt is secured if the debtor offers the creditor an interest in property to guarantee payment of the debt. A typical secured debt is an automobile loan, or a mortgage on a home. If the debtor does not make payments on a secured debt, the creditor will take back ("repossess") the property used to guarantee the loan, or foreclose on the home. For example, when you take out a car loan, you pledge the car as security on the loan. If you do not repay the loan, the creditor will repossess the car.

Other New Hampshire Collections-Creditors Rights FAQs

Q: What Is A Creditor?
A: A creditor is any person or organization to which the debtor owes money that has a finance charge added to the unpaid balance, or is scheduled to be repaid in … More
Q: What Is A Bill Collector?
A: A bill collector is a third party hired by the creditor to collect the debt. Collection agencies and attorneys who contact the debtor about a debt are bill collectors.
Q: What Is An Unsecured Debt?
A: Any debt that is not secured by property is an unsecured debt. A personal loan, medical bills and credit card balances are typical unsecured debts. Creditors cannot … More
Q: Why Use A Collection Agency?
A: Many debtors will pay a collection agency even though they never cooperated with the original creditor. The debtors sometimes realize you are serious or don't want a … More