A secured loan is a type of loan that is secured against an asset or property. Securing a loan against an asset or property usually means you can borrow larger sums of money for at lower rates, making them useful for consolidating debt. If you have several different unsecured debts, each with a high-interest rate, you could reduce monthly outgoings by paying them off with a single secured loan.
A client recently contacted us during lockdown to restructure some debt they had accumulated over the past few years. The client had concerns over their ability to meet regular financial commitments given the current economic climate and wanted to assess their options with regards to consolidating these debts all into one place.
Our team managed to agree a secured loan of £102,000, allowing our client to pay back an expensive existing secured loan, a hire purchase arrangement and numerous credit cards. The client was paying roughly £1,200 a month on all debts which we managed to bring down to just under £750 per month, saving them £450 per month.