Secured debt means a lender gives you money in exchange for collateral. Collateral is what is given to someone to secure the repayment of a loan if for some reason the loan can not be repaid. For instance, you give someone your lawn mower and borrow $400, in the agreement it states that the lawn mower was given as collateral, in the event the $400 does not get paid back. If the money is paid back, the lawn mower is given back. If not, the lawn mower is kept.