The Rate Tart

Secured and Unsecured Loans

Although there are lots of different loans available, the range of loans types is quite small. This press release describes the main features and benefits of each type and the advantages of using TheRateTart to get the best deal on the market.

Secured Loans must be guaranteed against a property. If you fail to pay back the loan the lender can re-possess your house to recover any outstanding debt. Because the risk to the lender is reduced, so are the interest rates. Conversely, the stakes are higher for the applicant if things go wrong . Amongst other factors, the amount you can borrow through a secured loan will depend on the amount of equity built up in the property. But spreading the loan over the term of the mortgage is likely to more than erode any savings from the reduced rate as interest builds up for longer.

Unsecured Loans offer the loan company no guarantee of repayment. Even if you are a home-owner the loan company has no automatic claim to your property if you fall into arrears. As this is a higher risk, interest rates are also higher. If you fail to make your repayments you will almost certainly be taken to court and are likely to end up damaging your credit rating. As a rule of thumb expect unsecured loans to be available for amounts between £500 and £25,000. Repayment periods can extend from 6 months to 10 years.

Debt Consolidation Loans are a way to group credit from a number of different sources in one place . The main attraction of debt consolidation loans for most people is lower monthly repayments and reduced complexity in managing their finances. Debt from credit cards, secured or unsecured loans and overdrafts can be considered for inclusion. But be aware, lenders make this possible by;

1. Lengthening the overall repayment. By doing this the Total Amount Repayable is increased, even though the interest rates and monthly payments are lowered.

2. Securing the loan against property. If you fail to keep up with repayments, the lender can repossess your property to get their money back. Interest rates on the loan may be variable - although the loan is affordable now, it may not stay this way.

That's not to say you should never consider a debt consolidation loan. But it is not a decision to be taken lightly. Consider what other options might be available or make an appointment with one of the free and impartial debt advise agencies. The main agencies are the Consumer Credit Counselling Service, Pay Plan, Citizens Advice Bureau and National Debtline.

TheRateTart is a comparison site that helps you find the best deals on secured and unsecured loans. You can find an independent and impartial view about the different products in the loan comparison tables. The detailed & useful information helps you to make a more informed choice. The tables on the site help you to compare unsecured loans and secured loans. You can also use the comprehensive secured loan directory available on the site.

TheRateTart is an independent, small and knowledgeable team of industry insiders. The main objective of the company is to offer you accurate, independent data and value for money offers. You will find all the necessary information to compare unsecured loans and secured loans and find the best deal for you. You will also find independent, impartial comparison tables for other products: Savings, Mortgages, Current Accounts, Insurance, Online Trading and Broadband.

Visit www.TheRateTart.com and find the best Secured and Unsecured loans available in the market.