Consolidation Loans
The principle behind a Debt Consolidation Loan is fairly simple
- you borrow a large lump sum to repay your creditors and are
then left with one creditor and one monthly repayment.
Types of Consolidation Loan
You may be able to obtain an ‘unsecured loan’
for this purpose from your bank or building society. The advantage
of this is that your home or property are not "secured"
against the loan and so will not be in danger should you fail
to meet the terms of the agreement. The disadvantage is that the
interest rate you pay will generally be higher than a ‘secured
loan’.
Many Lenders now offer ‘secured loans’ but remember
that your property will be secured against the loan and if you
do not pay it, the lender can take proceedings to have your property
repossessed.
Advantages
- Could reduce your monthly payments.
- You will have only one creditor to deal with.
Disadvantages
- You pay more over a longer period.
- May incur additional costs for setting up the loan.
- If secured, your property may be at risk.
Important Note
We would strongly advise any persons seeking to apply
for a ‘Debt Consolidation Loan’ to contact us first;
as there are many other debt solutions available that should be
considered first.
If you are unsure which step to take to solve your debt problems,
CLICK HERE to ask the opinion of our
professional debt advisers. This is a totally free and confidential
service. |
