A mortgage is an excellent example of a secured debt.
This type of debt is considered healthy debt due to the fact that it is gaining in value.
As your paying down this debt it is increasing in value then converting it to a tangible asset.
This asset is know as equity and it can be leveraged to purchase additional property.
The other type of debt is most commonly know as unsecured debt.
Unsecured debts such as credit cards are issued based upon your credit score.
The accounts are based upon your credit score and are not secured by anything other than your signature.
Secured debt rarely becomes a problem due to the process involved with borrowing the money to purchase real estate.
With some of the upkeep in the mortgage industry lenders are becoming increasingly concerned about the level of credit card debt being amassed.
In the past lenders have issued home equity lines of credit as a solution to credit card debt relief.
Credit card debts that get out of control are leeching equity out of homes all across the nation.
This unstable credit position can cause a reduction in your credit score because you are putting on paper that you cannot manage your own finances.
When banks look at your credit in the future they will see that you pulled equity out of your only asset to pay off unsecured debt.
This shift from unsecured to secured then can reduce your credit score due to the increase in secured debt.
Also remember that now if you ran into a crisis and could not afford to pay your secured debt you could be at risk to lose your own.