If you have been looking into consolidating your debts, or freeing up cash for an essential purchase, then you will have come across secured and unsecured loans. But which one is best for your situation? Find out right here.
Secured & Unsecured Loans
There is a simple difference between secured and unsecured loans. Secured loans are seen by lenders as lower risk because they are taken out against your assets – usually your home. If you don’t pay, the lender can foreclose your home and sell it. Unsecured loans usually have higher interest because they are far riskier for the lender to make; you are just promising to pay them back. So which one is better for your situation?