We know debt is bad. We know it could take us forever to pay off interest. But we make quick purchases to keep up with the Joneses, anyway. We go on a shopping spree because something looked good on TV, or simply to reward ourselves for getting through the workweek. We buy cars, home stereo systems, and self-twirling spaghetti forks we certainly could live without. By the time we find ourselves staring at a hefty bill less than 30 days later, we rue our impulsive decision to buy, buy, buy.

Some things, however, are worth getting into debt for. If you're a wage earner, nothing spells security just as much as land or a house does. You need never fear being homeless again, and secured home equity loans make it possible.

The Basics
A home equity loan gives you the opportunity to use your home's equity as collateral, in order to borrow money. Collateral is property that guarantees you will pay back a debt. To get your home's equity value, you subtract how much you still owe on your mortgage from your home's value. A home equity loan qualifies as a secured loan, as it is secured against a major asset. In this case, the asset is a home, although it may also include other properties.

The Second Mortgage
A secured home equity loan is also referred to as a second mortgage. Like the first mortgage, your property secures a home equity loan. In a nutshell, this loan transforms equity into cash, which people use for a variety of purposes. Home improvements, a popular choice, add equity to your home. Other common reasons for taking out a secured home equity loan include paying for your children's college education, medical expenses, family emergencies, and huge purchases; or consolidating your debt.

The Terms
Before you take out a secured home equity loan, you should be aware of the terms. You receive the loan in one lump sum at one time. Also, once you take out the loan, you cannot borrow again from the loan. In addition, it is possible to take out more than one loan on the mortgage of your home. But if you do that, make sure to notify your lenders.

The Payback
The benefit of taking out a secured home equity loan is that you can make investments that will last a lifetime. The drawback is that you have to pay the money back. The payments remain the same every month. While first mortgages must be repaid in about 30 years, second mortgages must typically be paid back in half that time. Nonetheless, that figure is not carved in stone, and the repayment period can range from five to 30 years.

The Risks
If you take out a secured home equity loan, you naturally have every intention of paying it back. After all, you know that if you default on payments, you could lose your land or your house. Thankfully, lenders of secured home equity loans often understand when borrowers have short-term problems with their payments. Conventional wisdom says that if you are willing to put your house on the line, then you are willing to give your heart and soul to make payments.

Though debt has become a dirty word in society, repayment need not be a nightmare. Secured home equity loan can help give you a fresh start in life.