Secured loans and Hire Purchase agreements:

Many people aren’t aware of the consequences of not keeping up with payments on secured loans and hire purchases agreements. If you have taken out a loan which is secured against your home your home is at risk of repossession, and you could lose your home, if you do not keep up with the repayments. Car loans are the same, not many of us read the terms and conditions when we buy a new car, many of the agreements are hire purchase agreements, once again, if you fail to maintain the payments on your car they may take back the car, sell it at auction for what ever they can get for it and send you the remainder of the bill that is outstanding. The wording “hire purchase” is what is states, you are hiring it until purchased.

Think very seriously before securing any loans on property as they tend to be over a longer term and no one can see into the future, lets face it if you could you wouldn't be on this website, you would be counting your lottery win on some cruise liner.

Secured loans will almost certainly have lower monthly payments but you may well find that you will pay back more than double in the long run as the agreements can be spread over 120 months to 300 months, whereas personal loans agreements are usually spread between 12 months and 120 months.

If you have a secure job or you intend to re-invest the loan in your property a secured loan may well be the answer as you may be able to commit to a longer period of repayment and hopefully any improvements you make to your property should add value and the monies may well be re-couped when selling your property.