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Secured vs. Unsecured Debt
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Mortgage
A secured debt where the collateral is real estate property.
Car Loan
A secured debt with the purchased vehicle as collateral.
Secured Credit Card
A type of secured debt designed to build credit, requires a cash deposit as collateral.
Home Equity Loan
A secured debt where the borrower's equity in their home is used as collateral.
Student Loan (Federal)
An unsecured debt issued by the government to fund education, no collateral required.
Personal Loan
Can be a secured or unsecured debt, commonly used for personal expenses.
Credit Card Debt
An unsecured debt that does not require collateral and often has high interest rates.
Medical Debt
An unsecured debt incurred due to healthcare expenses.
Payday Loan
A short-term, high-interest unsecured debt that is expected to be repaid with the borrower's next paycheck.
Business Loan
Can be a secured or unsecured debt based on whether collateral is provided for the loan.
Construction Loan
A short-term secured debt with the property under construction serving as collateral.
Title Loan
A secured debt that requires vehicle ownership title as collateral.
Unsecured Line of Credit
An unsecured debt that provides access to funds up to a certain limit without collateral.
Pawn Loan
A short-term secured debt where personal property is used as collateral.
Bridge Loan
A short-term secured debt often used in real estate transactions.
Utility Bill Debt
Generally an unsecured debt as utilities service itself is not collateral.
Peer-to-Peer Loan
Can be secured or unsecured debt, dependent on the agreement between the borrower and the lender in the peer-to-peer network.
Rental Agreement Debt
An unsecured debt unless a security deposit is held as collateral.
Bail Bond Loan
A secured debt where collateral is required to guarantee the appearance of the defendant in court.
Tax Lien Certificate
A secured debt instrument issued by a government entity against a property owner who has not paid property taxes.
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