There are numerous loans out there, but if you have your own property, the safest way to borrow a small amount is to secure the loan against your home. Personal loans are secured against your personal situation, your job and your credit status and as a result can be dangerous and expensive. But loans secured on your home, or secured loans, are the safer, cheaper option. But how do they work? How do they affect your home? And what are their advantages?

Secured loans are in affect second mortgages - in fact, sometimes they are advertised as just that, a second mortgage on top of your primary mortgage. What remains of your home's equity fund these loans - so if, for example, you have a mortgage for 60% of your home's worth, then you can secure a further 40% of the home's value with a secured loan.

These second mortgages have all the same trappings of a regular mortgage - the potential for fixed or variable rates, room to pay off the debt early or to stretch it out over a longer period and even the chance to have payment breaks. Secured loans are the best choice because they offer flexibility and opportunities - something personal, unsecured loans and credit cards lack.

Of course, you are free to do whatever you like with the proceeds. A secured loan is the perfect way to consolidate debt - if you have personal loans and credit cards with uncompetitive rates, a loan could be the best way to bring all of these debts together as one manageable payment each month. And if you have credit rating issues, this will improve your credit rating and allow you to borrow more at better rates in the future.

Secured loans are also a great way to make money. Investing equity back into your home by funding extensions, renovations and decoration with the loan can add money onto your home, which allows for even more equity and even more potential for future secured loans if you need them. When it comes to homeloans, sensible spending and good planning can lead to infinite financial possibilities.

A secured loan has all the same advantages of a regular mortgage - and all the same limitations. Secured loans are not quick and easy ways to get cheap money; they are real responsibilities that have to be paid off each month. Also, you only have a finite amount of equity in your property - homes in the UK have gone up in value a great deal over the last decade, but that doesn't mean equity should be wasted. Secured loans are a privilege, not a right for all homeowners.

So if you think secured loans could be the right choice for you, put a plan together and get some advice. Know how you are going to manage the debt and how you are going to use it - ultimately, the best secured loans are the ones that give you financial freedoms, not financial headaches.