Guide to Debt Consolidation Loans


Here is a useful guide to Debt Consolidation Loans. A Debt consolidation loan is a loan used to repay several other loans. A Debt Consolidation Loan is a low cost loan secured on your home. It frees up the spare capital (equity) in your home to repay your store card and other debts. It can reduce both your interest costs and your monthly repayments, putting you back in control of your life.

Are you tired of always having to balance lots of payments at the end of each month? Want a solution that will give you the chance to not only pay less each month but also manage them all in one simple payment?

Debt Consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.

A debt consolidation loan is a single loan that can be used to pay off multiple existing debts. These debts may have been incurred through personal loans, credit cards, overdrafts, or may represent any number of unpaid bills that have built up over time.

As the name suggests, a debt consolidation loan takes the group of debts that you owe, and consolidates them into one. This would mean that you only have one monthly payment.

Since the Debt Consolidation loan can be paid off over a longer time period, your individual monthly instalments would also be reduced.

If you find you have several monthly payments on a number of different loans you can make things easier for yourself by bringing them all together and taking out one single loan to pay off the total debt.

With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. Debt consolidation usually reduces the borrower's monthly payments by lowering the interest rate or extending the repayment period or sometimes both.

Debt Consolidation Loan rates are variable, depending on status. Your monthly repayments will depend on the amount borrowed and term.

Consolidating debt can be an effective solution if you have accumulated a lot of high-interest debt through an assortment of credit cards, store cards, personal loans, in fact any type of debt that you are struggling to pay back.

Debt consolidation will combine and repay all existing debt with one single loan, usually at a better interest rate, which means that monthly repayments are reduced and you are able to pay back the money you owe sooner.

Spend time researching different lenders and get quote from a handful before deciding on whom to take your debt consolidation loan from. Shopping around will give you the means to decide on the one that best suits your circumstances and budget.

The benefits of a Debt Consolidation loan is that you will only have one monthly bill to pay and depending on the rate of interest, the size of the monthly repayment compared with what you were paying to your creditors each month, is likely to be reduced.

The drawbacks to a Debt Consolidation loan are that you are likely to have to repay the loan over a longer period and as the debt is secured, your home is at risk if you do not keep up with the payments being made on it.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Debt Consolidation Information:

Related Articles

Consolidate Debt to Help Get You Out of the Quagmire
Will you agree with me if I tell you that, the key to financial success is to live within your means? This is an old belief that modern day income earners have completely forgotten. This is because it is now extremely easy to get into financial trouble.
Stafford Loan Consolidation
Stafford Loan ConsolidationA Stafford Loan, which can help to finance your way through a college or university, comes in two forms:Subsidized Stafford LoansA subsidized Stafford Loan, which you can receive based upon your specific financial aid. When a Stafford loan is subsidized, you are not required to pay any interest on the loan while you attend school.
Individual Voluntary Arrangement IVA, an alternative to bankruptcy
Individual Voluntary Arrangement, IVA is an alternative to bankruptcy - which could provide you with a real solution to your debt problems.An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy.
Debt Consolidation -- Choose Your Credit Counselor Carefully
Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will require people who are filing for bankruptcy to first undergo mandatory credit counseling.This is probably not a bad idea; after all, many people with problem debt could probably benefit from credit counseling.
Debt Consolidation - Be Careful When Trading in Your Car
The automobile has long been recognized as the classic American status symbol. America's millions of miles of roads and overall lack of long-distance mass transit leave the automobile as the primary method of transportation for most Americans.
Is Consolidating Loans Right For You?
Consolidating loans makes sense but only if you can pay a lower interest rate than what you're paying now. This is especially true if you are consolidating mortgage loans.
Open the Cash Vault Inside Your Home
Believe it or not, many people do not understand equity and the power it provides.In its purest form, equity is money.
Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit
An online debt consolidation loan allows even people with a poor credit to reduce their overall monthly payments and regain their financial footing. While there are personal loans that allow you to do this, tapping into your home's equity is a better option.
Debt Consolidation - Is It Really The Best Option For You?
It is a very common question that people pose to themselves across the English speaking world: should I consolidate my outstanding debt? There is no single answer to this question, as no two people have identical finances and other personal circumstances. There are also other factors that come into play that can affect the right or wrong of your decision.
Reducing Credit Card Debt
One of the easiest "things" that can happen in life is the ratcheting up of a large credit card debt. For whatever reason, making purchases with credit cards seems easier than spending cash to obtain a product or service.
Cutting Your Monthly Outgoing With Debt Consolidation
With consumer debt on the rise, many people have found themselves burdened with crippling monthly repayments on a variety of loans. This can make life very difficult, and can often means seriously compromising on your quality of life.
How To Get Rid Of Debt Problems Step 4 -- How To Get Interest On Your Debts Frozen
The first thing to understand is that there is categorically noguaranteed way to get interest frozen.Each of your creditors has the right to refuse any change in thedetails you initially agreed.
Debt Consolidation - Discipline is Required if Consolidating with Home Equity
Debt consolidation is a popular topic these days. The average American carries nearly $10,000 in credit card debt and credit card debt of $100,000 is not all that unusual.
Moving Debt Between Cards Can Save You Money
If you're like most people, you have plenty of credit cards, and you have stacks of offers for more. The credit card industry is so competitive that, whatever card you have, the chances are that somewhere out there is one that would be cheaper or better for you - and you can change as often as you want!Take Up Teaser Offers.
Pay Off Debt - Get Out Of Debt And Lower Your Monthly Payments
Debt consolidation can be confusing, especially if you have never considered contacting a debt consolidation company before. A debt consolidation company can give you free advice on reducing your monthly payments and show you the path to becoming debt free.
Debt Consolidation - Just Lump It All Together!
In a world where people use credit as much as they drink water, it is no surprise that so many people need debt consolidation loans. Debt consolidation loans sound like a good way of getting your debt cleaned up, but are they? If you need help getting out of debt, consider all your options before choosing.
Debt Consolidation can Ruin Your Credit
Yes, Debt Cosolidation isn't a good idea and I'll tell you why. I've done research of my own and found out some disturbing information.
Bad Credit Debt Consolidation Loans
Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation.
Consolidate Your Credit Card Debt
With the popularity of plastic money in the present age, credit cards are gaining immense importance. With the growing increase in usage of such cards the credit rates are also reaching the horizon.
Free Yourself Of Debt and Worry with Debt Consolidation
Debt consolidation programs can help you lift the burden of excessive debt and potentially save you hundreds of dollars a month. Debt consolidation professionals will work with you and your creditors to design a plan to help you lower your payments and reduce your debts quickly.