What is an Unsecured Consolidation Loan? Well, let’s separate this question into 3 parts. The 1st part of this answer will speak to the question of:

1.    What is a secured loan?

Essentially, there are 2 types of loans. The 1st type is known as a secured loan. This means that the entity that is lending you the money holds possession of one of your assets until you have paid the loan amount back in full.