You may have dreamed about owning something for a long time – a boat, for instance, or a sports car. But your regular income just won't run to it. Does this mean that you have to abandon the idea?

Some would say, yes – you should cut your coat according to your cloth. But in the current financial climate, it's increasingly easy to obtain a secured personal loan.

What does "secured personal loan" mean? It refers to a loan provided against security supplied by yourself, such as your home. Of course if you are not a homeowner, it's much more difficult to obtain a secured personal loan, unless you have some other valuable possession such as an expensive car.

So what are the main reasons you might want a secured personal loan?

• Debt consolidation. This is still the number one reason why people take out a secured personal loan. If you find you are over-committed financially, it can make sense to roll your debts into a single monthly payment. But never forget that the debts are still there! If your financial management isn't great, you could be putting your home at real risk.
• Car. If you are trying to buy a car, you may well find that a secured personal loan offers you a better deal than the finance package offered by the dealership. Some lenders will secure the loan on the car itself, rather than on your home, so you don't need to be a homeowner to apply. You usually need a "GAP" (Guaranteed Asset Protection) insurance policy as well, in case the car is written off or stolen and the insurance payout is less than the outstanding amount of the loan.
• Holiday. If you have set your heart on the trip of a lifetime, you may decide a secured personal loan is the only way to finance it. But you need to consider carefully whether it's worth saddling yourself with repayments for several years, in order to pay for a holiday which will be over in weeks.
• Boat. A loan for a boat can be either secured or unsecured, but if it's over about £10,000, it will probably need to be a secured personal loan. It's also possible to get a "boat mortgage" on an expensive boat, where the loan is secured on the boat itself, not on your house.
• Emergencies. You may suddenly find yourself faced with a financial commitment which you can't meet and you have no option but to look at a secured personal loan. Perhaps you need urgent roof repairs, or your central heating system has broken down. The provider of a central heating system may offer you a package of their own, but you may well find that a secured personal loan is cheaper.

A secured personal loan used wisely can enhance your lifestyle and sometimes make your dreams come true! But never lose sight of the fact that nothing, however exciting, is worth the trauma of losing your home.