Secured and unsecured loans: what’s the difference?

3 July 2008

A loan can be a big financial commitment. By taking one out, you will be required to give up a portion of your salary every month until the loan is paid off, and failing to do so could result in serious consequences.

There are two main types of loan: secured and unsecured. Each have their advantages and disadvantages, depending on a) your financial health and b) how much you want to borrow.