Concerns have been raised that a homeowner loan is not the best way to tackle a debt problem.

Financial website Fool.co.uk admits such loans, sometimes known as second mortgages, can be attractive and offer low interest cash secured against the borrower’s home.

However, such borrowing is not necessarily a good way to deal with debt, the website warns, as many borrowers use the money to consolidate their debts but then continue borrowing at the previous rate.

"As a result, the borrowers end up further in the debt mire," Fool.co.uk warned.

It says research shows secured loans often make debt problems worse and not better, adding that borrowers can lose their home if they do not keep up the repayments.

For those struggling with debt and who do not wish to secure borrowing against their home or face the stigma of bankruptcy, an individual voluntary arrangement might seem the best option.

Such an arrangement is settled in court and can allow the debtor to make repayments at an affordable rate and to write off the debt they cannot manage.