People commonly take out personal loans to cover those expenses where it is not possible to put up some form of security such as a car or a house. These typically include holidays, buying household goods, or consolidating debt from other sources such as credit cards. Because personal loans are not secured against an asset, they generally have a higher interest rate than a car loan or a mortgage. Unlike a credit card, a personal loan is usually negotiated for a fixed amount with regular set payments and no re-draw facility. This lack of flexibility means that the interest rates on personal loans are generally lower than credit cards.