We’re probably all familiar with the line “Your home may be at risk if you do not keep up with the repayments” which applies to debts secured against your home. A mortgage is just one example of a secured debt — it prevents you from selling your home without paying back what is owed and the lender can force the sale of your property if you fall behind with repayments. It’s why The Motley Fool favours unsecured loans because then you’re not risking losing the roof over your head.
However, there is one way that a creditor can turn an unsecured loan into a secured one and it’s by using a Charging Order. Be warned that creditors are increasingly using these as a means of getting their money back if you default on a loan!…
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