A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Secured DebtBorrowing backed by collateral, like a house or car, that the lender can take if you fail to repay the loan.
- Unsecured DebtBorrowing not tied to any collateral, such as most credit cards and personal loans, relying on your promise to repay.
- RepossessionWhen a lender takes back collateral, such as a car, after you default on a secured loan tied to that property.
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
- Auto LoanAn installment loan used to buy a vehicle, secured by the car, which the lender can repossess if you default.
- LienA legal claim a lender places on your property as security for a debt, which can block a sale until the debt is paid.
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Plain-English education — not personalized legal, tax, or investment advice.