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.
[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.