Can a debt consolidation loan be secured?

Yes. A debt consolidation loan can be secured or unsecured. If the debt consolidation loan is secured, it is secured against an asset like your property. This added security lowers the risk to the lender and this means a secured loan may come with lower interest rates than an unsecured personal loan, giving you lower monthly payments.

That being said, secured loans are not without their risk. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

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