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Secured Debt requires collateral.

When taking out a loan for the purchase of a car, a lien is placed on the vehicle's title. This lien acts as collateral and allows the lender to repossess the car to recoup funds if the borrower fails to make payments. This collateral provides security for the lender by reducing risk of loss, and generally offers the borrower a lower interest rate.

This car loan is an example of an Installment Loan. When approved for a car loan, a borrower receives a lump sum that must be repaid in regular payments.

Unsecured Debt is contractual.

When applying for a credit card, a borrower enters into a contractual agreement with the lender for repayment of a loan. Approval is dependent upon the borrower's ability to repay the loan and does not require collateral, reducing security for the lender. Unsecured loans present a higher level of risk for loss for the lender, as reclaiming loan defaults requires legal action. The increased level of risk for the lender generally raises interest rates for the borrower. 

This same credit card is an example of Revolving Debt. When approved for a credit card, a borrower is offered a credit line that allows them to borrow a set limit, repay it, and borrow it again.