If you fail to pay your secured debt, your lender will attempt to sue you seeking judgment against you. Upon successfully suing you, they will repossess the asset you pledge as security e.g., your home, your card, your boat, etc… They will liquidate the assets to recover their outstanding debt balance. If they have a deficiency balance, they will go after you for collection. Defaulting on a secure debt like your home, may cause you to become homeless.