[header] How to start living a debt free life [title] Distinguish between secured and unsecured debt. [step] Individuals often have a tendency to lump all debt together, when in reality debt differs significantly in cost, value, and risk. Knowing these differences helps you recognize which debt to tackle first. 
The difference between secured, and unsecured debt is the first distinction to understand. [substeps] Secured debt, also known as " asset-backed debt ", refers to debt that requires some sort of collateral to obtain the loan.