What Is A Secured Debt?

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What Is A Secured Debt?

A secured debt is a debt that is backed by property. A creditor whose debt is secured has a right to take property to satisfy a secured debt. For example, most homes are burdened by a secured debt. This means that the lender has the right to take the home if the borrower fails to make payments on the loan. Most people who buy new cars give the lender a security interest in the car. This means that the debt is a secured debt and that the lender can take the car if the borrower fails to make payments on the car loan.

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