A secured debt is any debt that is secured against an item. The company lending you the money will use your asset as security if you can’t repay your loan, which means your lender has the right to repossess your home or car (whatever asset was used to secure the loan.)
Unsecured debt is when you borrow money from a lender and agree to make regular payments until it’s paid. This type of debt, usually borrowed as a loan, isn’t secured on any assets and so the interest rates tend to be higher.
When it comes to repaying debts, many unsecured loan debts can be included in either a Trust Deed or DAS, however, there are some considerations.
Student loan – Unsecured debt but can’t be included in a Trust Deed or the Debt Arrangement Scheme.
Guarantor loan – Unsecured debt, can be included in a Trust Deed or DAS but will mean that the lender will almost certainly pursue the person who acted as a guarantor on your behalf for repayment of the debt.