One of the drawbacks of a secured loan is that if you have trouble paying back your secured loan, the lender may take the collateral you put up for the loan. For example, a car may be re-possessed if the loan payments are not made on a timely basis. When you have trouble repaying an unsecured loan, you run into higher interest rates and fees that make repayment even more difficult. Lenders typically give you warnings and time to pay or options for special plans. It’s important to communicate with your lender about issues you are having or contact a reputable credit counseling agency for help.