Let's get personal - unsecured personal loans - the alternative
Personal loans are more of a risk to lenders because strictly speaking there's no guarantee that they'll get their money if you don't pay up.
But don't take that meaning it is risk free - lenders have ways to recover the amount remaining on unsecured loans too and you are always responsible for paying off what you owe.
Cost-wise there's not much to choose between an unsecured loan and a secured loan, although the unsecured versions do tend to have slightly cheaper rates - currently the best deals start from around 5.8%.
If you're not a homeowner and need to borrow money, a personal loan will be one of only a few options open to you as you will be unable to take advantage of a homeowner loan.
Overdrafts and credit cards are also options, but they are expensive and can't realistically offer you much more than a couple of thousand pounds. So an unsecured loan may be the best option for you.
Unsecured homeowner loans offer good value - if you borrow £5,000 over five years with at a rate of 5.8%, you'll only pay back £5,771 with monthly repayments of as little as £96.
That's why these loans are often seen as a good way to consolidate your debts - if you've got several thousand pounds worth of credit card debt stuck in your wallet, committing to a payment plan through a good value unsecured loan is a good way to get out of the red.
Whatever choice you go with, make sure you stick to the golden rule - borrow what you can afford, and no more. If you find yourself in a position where you can't meet your repayments you should talk to your lender before the problem gets out of hand.
* Homeowner Loans: Complete our online form and find the best secured homeowner loan for your circumstances:
* Personal Loans: Use our best buy tables to find the best rate personal loan:
* Adverse Credit: If you have credit problems use our profile tool to find lender most likely to accept you application and compare personal loans: