A loan is an agreement to repay a sum borrowed plus interest over a period of time.
A secured loan is where the creditor takes security against an asset that you own, most commonly your home. Failure to repay the debt could lead to the property being repossessed. A mortgage is a type of secured loan.
The main advantage of a secured loan is the lower interest rates offered. You can also normally still obtain a secured loan even if you have adverse credit or debt history.
The main draw back of a secured loan is the risk of losing your asset if you fail to keep up repayments. By getting into arrears you may face home repossession.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.