Secured debt is a type of loan where the borrower provides collateral to guarantee repayment. This means that if the borrower fails to make payments, the lender can seize and sell the property used as collateral to recoup their losses. Common examples of secured debts include mortgages on homes or car loans where the vehicle is used as collateral. In contrast, unsecured debt does not require any collateral and relies solely on the borrower's promise to repay.