Secured debt refers to a type of debt in which a lender provides you with money in exchange for collateral. In this case, the borrower offers some form of asset or property as security to guarantee the loan. The collateral acts as a reassurance for the lender, as they have the right to seize and sell the asset if the borrower fails to repay the debt as agreed upon. This process helps mitigate the lender's risk and provides some level of assurance for them in case of default.
