Debt Glossary : Secured Loan
A secured loan is a loan which is advanced against property or another asset, which is used to guarantee that the loan will be repaid.
It is most common for a secured loan to be secured on the borrower's home, which could then be put at risk of repossession should repayments not be kept up.
Secured loans are generally easier to be approved for than other forms of credit, as there is less risk involved for the lender.
They are a popular choice for funding a debt consolidation program, as the amount you can borrow is in many cases limited only by the amount of equity you have in your home, meaning you can raise enough funds to clear all your existing debts.
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