Secured Debt Legal Meaning and Definition

Here is a simplified definition of the legal term Secured Debt.

Secured Debt (noun)

A type of debt where the borrower guarantees repayment by providing the lender a right to take a specific item or items (known as collateral) if the borrower fails to repay the debt. This provides extra protection for the lender. The collateral could include a house, car, or other valuable assets.