If you have a house and have a mortgage or line of credit, you have a secured debt. If you have a car and have a car loan, you have a secured debt. If you are carrying credit card debt or consumer loan you have unsecured debts. The difference between secured debt and unsecured debt is if you fail to pay your mortgage or car loan, your lender can sell the assets to pay back the outstanding debt amount. In the case of failing to pay your credit card debt or loan, the lender has no assets to repossess.