What is the difference between a secured and unsecured bill consolidation loan?
You have two options if you are going to use a loan to consolidate your debt: secured and unsecured loans. With a secured loan, you will be using your personal property as collateral against the loan should it go into default. The most common form of secured consolidation loan would be a home equity loan or refinance. The advantages of going with a secured loan is the interest rates are generally lower, however, you face the possibility of losing your property should you not be able to pay it back. An unsecured consolidation loan would be one where there is nothing used as collateral. This type of loan tends to have a higher interest rate than a secured, and may be a bit harder to get approved for. The plus side is that you aren’t risking any of your personal property.
