Secured or collateral debt is basically the same type of debt. A lender has the legal right to take back whatever you financed if you default on the lending terms and conditions. If you don’t pay the monthly bill on time, the lender can repossess whatever they have security or collateral against. This type of debt is asset specific. If you default on a car loan, the lender can’t take any car you own that they want – they can only take the car they lent against.