debt collateralization

Debt Collateralization is a way of protecting lenders from losing money if someone doesn't pay them back. When someone takes out a loan from a bank or other lender, they need to give them something valuable as collateral – like a house or a car – that the lender can take from them if the person doesn't repay the loan. This way, the lender has something to sell if the loan isn't paid back and can get at least some of their money back.