It is not surprising that debt arising from secured loans is rising so quickly due to the number companies offering secured loans. A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral — in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower. From the creditor's perspective this is a category of debt in which a lender has been granted a portion of the bundle of rights to specified property.

Please call 0800 074 6918 for information on how to settle debt from secured loans.

The opposite of secured debt/loan is unsecured debt, which is not connected to any specific piece of property and instead the creditor may satisfy the debt against the borrower rather than just the borrower's security.

There are so many different types of secured loans in the UK and even more reasons why the UK public take out secured loans. Our research team has provided a list of common secured loan types:

• Low Interest Secured Loans
• Secured Loans  for people with  credit problems
• Secured Loans Information
• Bad Credit Secured Loans
• Secured Loans with CCJ
• IVA Secured Loans
• Poor Credit Secured Loans
• Cheap Secured Loans
• Secured Loans for Bankrupts
• Secured Loans for Self-Employed
• Secured Loans for Debt Consolidation
• Secured Loan Arrears
• Low Interest Secured Loans
• Lowest Interest Secured Loans
• Secured Loans - Credit ProblemsSecured Loan Advice
• Secured Loans Information
• Bad Credit Secured Loans
• Secured Loans with CCJ
• IVA Secured Loans
• Poor Credit Secured Loans
• Cheap Secured Loans
• Secured Loans for Bankrupts
• Secured Loans for Self-Employed
• Secured Loans for Debt Consolidation

Advantages of secured loans

• Secured loans are simmple to obltain if you have equity in your property. Unsecured loans are almost always cheaper for those with decent credit scores, but secured loans provide lenders with, well… security, so they're more willing to lend to poor credit scorers.
• Large  borrowing is possible with secured loans.  The maximum unsecured loan is £25,000 yet secured loans can be £75,000.
• Secured loans provide borrowing over a longer period. Secured lenders prefer loans to last longer to help offset hefty set-up costs, usually from five to 20 years.  Unsecured lending is usually one to seven years.  Borrowing for longer does reduce the monthly repayments, but substantially increases the total interest repaid.

Disadvatages of secured loans

In recent years, reports in the media have raised concerns about the use of secured loans. The worry is that many people are tempted to consolidate unsecured debt into secured loans, usually secured against their home.

Although the monthly payments can often be lower, the total amount repaid is often significantly higher due to the long period of the loan. Debt consolidation sometimes only treats the symptoms of debt and does not address the root problem. In some circumstances, snowballing debt may be a better solution. It is not surprising that debt arising from personal and secured loans, car financing and expensive mortgages is as widespread as it is. This is due to the number of profit making sales firms offering secured loan products.

Please call 0800 074 6918 for information on how to settle debt from secured loans.

There are other alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt, but is eliminated through a settlement or payment plan. Debt consolidation can be confusing for many people, so it is helpful to learn about all of your options, and sometimes with the help of an advisor.