Secured creditors are creditors that have some type of property (ie. security) or collateral for the loan you owe. They have a lien on your property, which is an interest in property that allows a creditor to repossess that property if you don’t pay. Your mortgage company has your house as security for the mortgage loan. The auto finance company has your vehicle as security for the auto loan. The local finance company may have some of your furniture and household goods as security for the money they loaned you. These are all secured creditors.
Unsecured creditors are creditors who you owe money to, but they do not have the right to repossess anything if you don’t pay them. Credit cards, medical bills, signature loans, payday loans are some examples of unsecured debts.