There are many companies out there that are offering to help you get back in the driver’s seat and manage your debts more easily by consolidating them into one easy, low monthly repayment.
No matter what you need a loan for, these companies can help. You can get a loan to reduce your monthly expenditures or just get a loan that doesn’t make you spend all your hard-earned savings.
A personal loan can be either a secured loan for homeowners or an unsecured loan for homeowners or tenants. Most companies offers secured personal loans, which are secured against an asset like your home. The main differences between secured and unsecured loans are: unsecured loans are for homeowners and non-homeowners; they get processed quickly; they tend to carry higher interest rates than other loans and a good past credit history is required as the lender usually checks your credit score.
Secured loans are for homeowners exclusively; you can have bad credit or no credit; and your home is used as security against the loan so most often you can take advantage of competitive interest rates.
A secured loan can be called several different things: a homeowner loan, a second charge loan – as a homeowner your loan, secured on your property through a second charge, will not disturb your existing mortgage – or a first charge loan, which is a loan charged to your property when it has already been paid off in full.
You get such low interest rates with secured loans because your house provides security on the loan. But the interest rate also depends on how much you borrow and your personal financial circumstances. Make sure to search for the lowest possible interest rates available as this will minimise your monthly repayments.