I'm not an expert in finance, so don't hold it against me if I'm wrong, but does "backed by" not rather mean that the bank can have your house if you can't make

I'm not an expert in finance, so don't hold it against me if I'm wrong, but does "backed by" not rather mean that the bank can have your house if you can't make payments? This in opposition to a credit card debt where they have no come-back. Other than the courts and collections agencies. I was under the impression that this was the reason that consumptive loans generally are capped far far lower than mortgages. And have triple their interest rates. While it is true that I can put my university on my credit card, it is very expensive and very rare. I would wager that the majority of these loans are for cars. Which, I agree can create wealth, but it would have been 'better practise' to buy a cheaper car, and switch when that anticipated wealth has been created. Moreover, those cars explain only part of the loans. The rest is 'bigger tv' or the likes. And those do not even create wealth.