Finance: Secured and Unsecured debt - which to prioritise!

I have both secured and unsecured debts so which should I try to pay off first?

I feel like I need some good advice here ....

Pay of secured or unsecured debts first?

Final poll results: 28-days poll expired: 20 Feb 2024


  • There is no simple answer!
    Secured loans should carry less interest because they are protected by whatever security collateral is threatened if you should default on the loan.
    Whereas unsecured loans do not offer the lender security and would usually impose a higher interest rate to compensate

    So based on your limited info my advice is to
    pay down the unsecured loans first because that will save you money against their higher interest rates so look at each of their interest rates and focus on the most expensive to clear as priority
    BUT in doing so make sure that you always faithfully maintain the secured loans so that your assets - and particularly your HOME - are never put at risk

    THEN when your unsecured loans are cleared you can concentrate any spare resources on the secured loans

    AND in the meantime if you do run into more unforseen problems then it should be easier for you to obtain a further unsecured top-up to get you that's a "safety net" you hopefully won't actually need