Secured debt
GeneralA loan backed by collateral — something the lender can take if you do not repay. Mortgages and car loans are common examples. Secured loans typically have lower interest rates because the lender has less risk.
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Unsecured debt
Debt not backed by any collateral. Credit cards, personal lines of credit, and payday loans are unsecured. Because the lender cannot seize a specific asset, these loans usually carry higher interest rates.
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Mortgage
A loan specifically for buying property, where the property itself serves as collateral. In Canada, mortgages typically have 5-year terms within a longer 25-year amortization. On-reserve, Ministerial Loan Guarantees may be required.
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Debt
Money you owe to someone else, whether a bank, credit card company, family member, or other lender. Not all debt is harmful — a mortgage or student loan can build toward something — but high-interest debt like credit cards can trap you.