The following is a post on behalf of Secured Homeowner Loans

When you’re living on a shoestring, you gotta make due where you can. Let’s get real – payday loans and cash advances from you credit cards are best used as a last resort. Secured homeowner loans are a step up, but they’re still best reserved for specific situations in your life.

Remember, you’re borrowing from the equity in your home, so you need to treat the money carefully and not use it for things such as unsecured debt payments. Though it sounds like a good idea in theory, it’s actually a terrible financial move to make. Instead, use the money for things in your life that truly justify the need for money borrowed against the roof over your head. In other words, make it count.

1. Home Renovations

If your bathroom is falling apart or you need to fix up your kitchen, you can use the proceeds from your secured homeowner loan to foot the bill. The lending institution you borrow from will dig the fact that you’re using the money for home renovations, and they will likely reward you with a larger amount to get the work done. This is because when you make any improvements to your home, you’re upping your property value in the process.

2. Caring for a Sick Relative

If someone in your family is critically ill, and you’re the only one they can depend on to care for them, then you’ll need money to make that happen. Healthcare expenses are not cheap, and more often than not, claims are denied for those among us who are the sickest. If you have no choice but to provide shelter and cover the medical costs for someone close to you, then a secured homeowner loan may be a good way to supplement the expenses.

3. If You’re Facing Bankruptcy

Avoiding Bankruptcy is the only time that using secured funds to pay off unsecured debt is worthwhile. Let’s size this up logically. Bankruptcy will ruin your credit – at least for the foreseeable future, right? So you need to do everything in your power to steer clear of the courthouse. In this case, using a secured homeowner loan is a good way to consolidate your high interest debt into one manageable payment that you can make every month without filing for Chapter 7. Just make sure you only take out what you need – don’t be tempted to ask for “a little extra” for things that aren’t absolutely necessary, such as clothes or trips to the beach. We don’t need to spell the no-no’s out for you.

Getting Your Secured Homeowner Loan

Depending on where in the world you obtain your loan, there may be different guidelines you must follow. For example, UK secured loans use qualifying procedures that generally carry the same guidelines as those in the US. The most important of which is that you cannot borrow more against your house than the amount of equity you have built up. So, if your house is new and you just started paying your mortgage, then a secured homeowner loan may not be an option for you. Make sure to find out your home’s value and gather all required documentation about your home before approaching a lender, and be prepared to explain how you intend to use the funds before you meet with a loan officer to discuss your options.

Once you are ready you can use a website to get an idea of the interest rate you can expect to pay on your loan. Then with that information you can decide if taking out that loan makes financial sense for you.