Secured debt uses an asset as collateral to secure the loan, while unsecured debt doesn’t require any collateral. If a borrower fails to repay the loan as agreed, the lender can seize the collateral.

In 2025, people throughout the U.S. saw rising prices for consumer goods and a reduction in income and employment. Those factors contributed to a substantial rise in credit card debt.

The 10% proposed cap from President Donald Trump comes as the number of Americans who are carrying long-term credit card debt ...