Personal secured loans tend to have a lower interest rate compared to unsecured personal loans. This is because there is less risk involved for lender because loan is secured on your property.

One of advantages of personal secured loans is that they are generally straightforward and therefore quick to arrange, often within a few weeks. As lender is securing loan against your property as collateral, it means you don't have to sell up or move house.

Even if you have a bad credit history such as CCJ's, mortgage arrears or payment defaults, you can obtain a personal secured loan although rate of interest you pay will be higher than if you had an unblemished credit history.

Personal secured loans can be used for a variety of reasons, including:

home improvements - a loan is taken out to carry out home improvements, with aim of adding to overall value of home.

car finance - a loan is taken out to finance purchase of a new car, as terms of a personal secured loan are more attractive than other car finance options.

mortgage arrears - a loan is taken out to cover arrears in mortgage repayments, or to convert current mortgage repayments into a longer-term, more manageable loan repayment.

debt consolidation - a loan is taken out to pay off existing debt, thus consolidating debt into one manageable, longer-term loan repayment.

The danger with a personal secured loan is if you are unable to keep up repayments on your loan your home or asset which secured loan could be at risk. It is important to bear in mind that your property is at risk if you fail to keep up personal secured loan repayments.

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If 16-18 year olds were forced to take a gap year before university and undertake a period of community work and life skills training, it is unlikely that they would graduate with same level of debt. Just like binge drinking, smoking in public places and increasing levels of obesity, debt accumulation is part of a distorted value system. The kids deserve some of blame, though government also needs to take an interest. There is no reason, even with tuition fees, why even poorest students cannot go to university, but expectations of a suitable standard of living have to be lowered, with a genuine concern for a suitable standard of education at heart of matter.

To get best deal on financial products: http://www.moneynet.co.uk/

Information on student finance: http://www.creditaction.org.uk/documents/StudentsSample.pdf

Citizens Advice Bureau http://www.adviceguide.org.uk/

Rachel writes for the personal finance blog Cashzilla: http://www.cashzilla.co.uk/