Sometimes the terminology surrounding the loan and finance business can be confusing, especially if you're new to it. Secured loans, personal loans, APR, interest only loans - unless you know what the terms mean, you could find yourself signing something you didn't intend. Here's a quick primer on what you should know.
Secured loans are called that because you put down something for collateral to make the lender feel secure that you'll be paying the money back. Most often, that collateral is your house, which is why these types of loans are often called homeowner loans.
Collateral is a property or a belonging that you pledge to the lender. In simplest terms, you agree that if you break the terms of the repayment, the lender can take your house away and sell it to get their money back.
When borrowers fail to make payments on secured loans, they are said to be in default. Generally, it takes far more than one missed payment to put you in default and there are a great many laws to protect your rights as a borrower, but it's best to read any loan agreement that you sign very carefully to be sure that you understand its terms.