Simple.......

Unsecured debt has high interest rates. This is because the bank does noy have an easy recourse to your possessions to pay the debt if you default.

Secured debt has lower interest rates as they simply repossess your possessions when you default.

Therefore, the pro is it's cheaper per month. The con is that it can have your house taken.

Also, secured debt tends to be much longer term. You therefore pay interest for a much longer period with the principal only reducing slightly.

As an example, every ?100k on a mortgage equates to around ?250k in money you have to pay back.

Pro is a reduction in outgoings per month. Con is that you pay for much longer.

Now go find some people who have done it and get their perspective.

Simple.

Posted By: Shilpa Poppadom, Jan 24, 13:15:24