When talking to debt companies, you may hear the word "Secured Debts" or "Unsecured Debts" frequently. Credit that is extended to you in the form of a mortgage, a car loan, or a home equity loan is an example of secured debt. “Secured” means secure for the company extending the credit. The debt is secure in that if you default, or stop paying your payments, the firm extending credit may seize the item that the loan is secured against. That item is called collateral.

Secured debts usually have collateral attached to them in the form of a lien. A lien is a monetary claim against a property to be satisfied before full ownership can take place. An example would be a Loan on your house. The mortgage company owns the house until you have satisfied the lien (mortgage) by paying off the amount you owe to them.

Examples of Secured Debts are:

· Mortgages (1st, 2nd & HELOC)
· Car Loans
· Bank Personal Loans tied to a house, car, or other valuables.
· IRS Tax Liens (usually tied to a house or established as a garnishment of wages)
· Loans for RV’s
· Credit extended by retailers for large purchases such as dishwashers (Sears)

Typically secured debts are not negotiable in any way, shape or form. Really the only way to satisfy a secured debt is to pay it off or get another loan with a lower rate to pay it off. If you are looking for a mortgage, we offer a free service that will provide you quotes from some of the lowest rate offers on the Internet here

If you would like a free quote from a company similar to the ones mentioned above, click here or call 1-800-646-2993.