Secured Debt Consolidation Loans
This, as the term suggests is taking out one loan to repay all the other existing loans.
Apart from the benefit of having a single creditor rather than many, it can also get the loan applicant lower interest rates, lower monthly payments as well as a Fixed Interest Rate.
For example a homeowner who has various unsecured loans at high interest rates can get one Debt Consolidation loan at a comparatively lower interest.
This is secured against collateral often a Home.
A secured loan allows for a lower interest rate as the collateral of the house significantly reduces any risk the lender has to take.
Homes which are currently mortgaged can also be used to get a secured loan.
There are however trade-offs of taking a secured loan, since your home is used as collateral it may be repossessed if you fail to keep up the monthly payments so make sure you are in a position to keep up the monthly payments before you go in for a secured loan.
In the UK there are various Secured Loan Companies which offer loans for it, some of the more popular ones being companies like First Plus, Norton Finance, Ocean Finance and Picture Finance.
If you decide to go in for a Debt Consolidation Loan you can apply for a free online quote by filling in an application for it.
When does a Secured Debt Consolidation Loan make sense? 1.
Credit Card Debts: Credit card debts generally charge some of the highest interest rates around often more than even unsecured loans so in case you have a lot of credit card debt it might be a good idea to go in for one.
2.
Bad Credit History: If you have a CCJ or a country court judgement or if you have missed your payments in the past it might be your only option as many companies offer secured loans even for people who have a poor credit or are considered to be sub-prime.
Apart from the benefit of having a single creditor rather than many, it can also get the loan applicant lower interest rates, lower monthly payments as well as a Fixed Interest Rate.
For example a homeowner who has various unsecured loans at high interest rates can get one Debt Consolidation loan at a comparatively lower interest.
This is secured against collateral often a Home.
A secured loan allows for a lower interest rate as the collateral of the house significantly reduces any risk the lender has to take.
Homes which are currently mortgaged can also be used to get a secured loan.
There are however trade-offs of taking a secured loan, since your home is used as collateral it may be repossessed if you fail to keep up the monthly payments so make sure you are in a position to keep up the monthly payments before you go in for a secured loan.
In the UK there are various Secured Loan Companies which offer loans for it, some of the more popular ones being companies like First Plus, Norton Finance, Ocean Finance and Picture Finance.
If you decide to go in for a Debt Consolidation Loan you can apply for a free online quote by filling in an application for it.
When does a Secured Debt Consolidation Loan make sense? 1.
Credit Card Debts: Credit card debts generally charge some of the highest interest rates around often more than even unsecured loans so in case you have a lot of credit card debt it might be a good idea to go in for one.
2.
Bad Credit History: If you have a CCJ or a country court judgement or if you have missed your payments in the past it might be your only option as many companies offer secured loans even for people who have a poor credit or are considered to be sub-prime.