Question: What is the difference between unsecured and secured debt?


Answer: If a creditor holds a mortgage or has the right of ownership over an property or asset until such times as the debt is repaid in full, then the debt is considered secured. For example a bank mortgage as in a home loan over a property or family home.

If a Creditor has no right or ownership to an asset and there are monies owing then this is considered an unsecured debt. An example of this might by a family loan.