Unsecured means the loan isn’t linked to your home. Some consolidation loans require you to secure the loan against your home. However, if you fall behind with payments and can’t afford to repay what you owe, you’re at risk of your home being repossessed.
In some cases it may be an option to use the equity in your home to manage debts or support your retirement plans, but you should always seek expert mortgage and equity release advice if you’re considering this option.
Find out more about secured and unsecured debt consolidation loans and your home.