Getting a secured loan (otherwise known as a homeowner's loan) might be a good option for you if you're in need of urgent capital that won't leave you burdened with high interest payments that are typical from other loans. The rule is, you must secure a physical asset which is valued at or above the amount of capital being borrowed from the lender, such as the equity in your home. One could argue that this type of loan is quite daunting as you're putting your high valued possessions on the line. However, it gives the lender a tangible piece of security (like an insurance policy) to secure your debt, which usually allows you to borrow significantly more cash than through an unsecured loan due to added lender's confidence. The people reading this article would be asking by now, "when should I get a secured loan"? To answer this question, it is important to understand the circumstances in which this type of loan is a good option Are you thinking about filing for bankruptcy? A debt consolidation loan could potentially reduce your monthly outgoings by paying off all other debts and leaving you with only one repayment. This secured loan could help you regain your credit score rating, instead of losing everything and starting from scratch. Another common secured loan is a second mortgage. The amount of capital you can borrow depends on the existing equity you own in the property so you can secure that against the debt.