A secured loan is a loan attached to your home. If you’re unable to pay the debt, the lender can apply to the courts and force you to sell your home to get their money back.
Because lenders have security of your property, they may offer much lower interest rates than on other types of lending, or they may lend to people with a poor credit history who wouldn’t get an unsecured personal loan. You may also find that you can borrow more through a secured loan than you can through a personal loan
If your circumstances change and you miss payments to a secured loan, you could lose your home.
You may have seen adverts for secured loans on TV. They're often advertised as debt consolidation loans, a way to put all your existing debts into one loan. All of this might sound appealing, but it comes at a very high risk.
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