A secured loan is also known as a second charge loan and is similar to a mortgage as it is secured on your property.

Many people take out a secured loan to pay off outstanding unsecured finance; one of the main reasons to use a secured loan is that they can be cheap and quick to set up with out you having to pay any money upfront for the service. With credit cards rates of 18% APR and higher, a secured loan will save you a fortune in the long run.

There are numerous benefits in refinancing a credit card, with the first being the most obvious, of lowering the monthly payment. The second benefit is that there will be no incurring debt when the card is paid off with a secured loan, because the amount that is owed will be kept the same, but the debt will be moved to a more affordable repayment method. By using a secured loan to pay off credit cards, it will consolidate the debt, hence making it easier to pay.

A lot of people find that adding credit card debt to a mortgage and then over paying is a much cheaper and efficient way of paying back finance. However if you are currently tied into your mortgage with your current provider, there will be an early repayment charge if you repay the mortgage early. Or you may already be locked into a low rate with your lender and do not wish to come out of this contract.

Some small business use credit cards as a way of financing short term purchases, you may have been to you bank about a business loan and not been successful. A secured loan could be the way of consolidating your business credit cards and helping you move your business forward.

Secured loans are available for people with a low credit score here at J P Financial we have access to bad credit secured loan lenders for the employed and self employed. What ever your situation contact one of our advisers to day about using a secured loan to repay credit card debt.