Question

What is the primary difference between secured and unsecured debt?
Responses

Secured debt has a higher interest rate than unsecured debt.
Secured debt has a higher interest rate than unsecured debt.

Secured debt is easier to obtain than unsecured debt.
Secured debt is easier to obtain than unsecured debt.

Secured debt has a shorter repayment term than unsecured debt.
Secured debt has a shorter repayment term than unsecured debt.

Secured debt requires collateral; unsecured debt does not.

Answer 1

The primary difference between secured and unsecured debt is that secured debt requires collateral, while unsecured debt does not.