Secured and unsecured debt consolidation loans

A secured debt consolidation loan works like a second mortgage. This is why it is sometimes called a ‘second charge mortgage’.

If you miss payments and cannot pay back the loan:

• Your credit rating will be affected, and
• The loan company can take and sell your property

There are risks with using secured loans to pay back debts.

This is also known as a personal loan.

It gives you new credit to pay off debts without linking anything to the loan like:

• Assets
• Collateral

Interest rates vary based on your credit history.

This means they will be higher if you have a poor credit history.

If you struggle to keep up with repayments:

• Your credit rating will be affected, but
• The loan company cannot repossess your home

You may be able to reach an agreement with the lender like:

• Lower repayments or
• Paying over a longer period

Struggling to make debt repayments? Contact us (free from all landlines and mobiles) or try our online debt advice tool.