It could, if you manage it correctly - though as we've said, personal loans tend to be cheaper and much less risky so should always be your first port of call if you're getting a loan to pay off other debts.
Secured loans are not always easy to compare, as they can have variable rates for some or all of their term. These variable rates often shift both with UK base rates and for the lenders' own reasons - check the terms to see if and how your rate could vary.
The rate you're looking out for is the APRC. This stands for "Annual Percentage Rate for Comparison" and it is a rate that encompasses both the interest you'll pay and all the lender's fees (eg broker fees, valuation fees & legal fees).
Here's how much of a difference different APRCs can make to the cost of borrowing on an example £18,000 loan... and how that loan compares to paying credit card interest on the same amount...
TABLE_CELL_STYLEMonthly repaymentTermTotal interest (+ fees)Saving Credit cards at 21%£4006 years, 9 months£13,950£0 Secured loan at 13.2%£3306 years£8,160£5,790 Secured loan at 7.9%£2806 years£4,650£9,300 As you can see from the table, secured loans can cut your cost of borrowing quite significantly. Yet, it's always worth checking whether you can get an unsecured loan first.... Get an unsecured loan at 3% for £18,000 over six years and you'd pay just £1,670 in interest and fees - a saving of more than £12,000 over the credit card, and a saving of £3,000 over the cheapest secured loan. Use our Loan Eligibility Calculator to see if you're likely to be able to get an unsecured loan and personal loans calculator to see how much you can borrow.