Getting the Most Out of Consolidation Loans UK


Before letting too much debt or too many payments get the better of you, consider applying for consolidation loans UK.

If you're wondering what they are, consolidation loans UK are loans that are designed to "consolidate" debts of various kinds? paying them off with the amount of the loan, leaving the one loan payment in the place of the multiple payments you were having to make before.

The end result is fewer debts hanging over your head, fewer cheques to write, and an easier time keeping your all of your finances under control.

A variety of options exist for consolidation loans UK? secured loans, unsecured loans, and a variety of interest rates and terms.

Some consolidation loans UK are designed for people who have debts beyond their ability to reasonably repay, and others were created so that people with multiple loans with the same bank or finance company (perhaps an automotive loan, a boat loan, and a personal loan) can combine their loans and refinance them at a lower interest rate.

A matter of collateral

The difference between secured and unsecured consolidation loans UK is collateral, or property that has some value which is used to guarantee or provide security for a loan.

A secured loan is one in which collateral is provided, with the collateral acting as a guarantee that the lender will get their money back no matter what happens. When the loan is taken out, a lien (which is a legal claim to the property) is placed on the property? once the loan is repaid, the lien is removed.

Should the borrower fail to repay the loan, then the lender can exercise their legal right and take possession of the property in order to sell it and get their money back.

This repossession can be expensive for the lender, however, so most banks and finance companies would much rather receive the money for their consolidation loans UK from the borrowers than from selling repossessed property.

Unsecured loans are those consolidation loans UK that do not require collateral to guarantee the loan. These are much less common than the secured loans, and almost always have higher interest rates.

The increased interest rates are due to the increased risk of these loans? without the collateral as security, there is no guarantee that the lender will get their money back should the borrower default (or not pay) on their loan obligation.

These types of consolidation loans UK are usually only offered to borrowers who are consolidating multiple loans with a single lender or to those who have exceptionally good credit.

The risk of unsecured loans is often too great to allow them to be granted to people with poor or bad credit.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help 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

Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills
For millions of homeowners, refinancing is the perfect way to consolidate debts. You can consolidate your debts, eliminate outrageous interest rates and fees, and make one low monthly payment.
Debt Settlement Strategies
One of the most common social diseases remains dormant for a long time. And when it raises its head, it reveals its monstrosity slowly.
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.
Debt Consolidation with Free Government Grants? One Scam to Avoid
Have you ever seen a commercial or an ad promising "free government grant money?" According to these ads, the government and other organizations give away nearly one half a trillion dollars each year, and all you need to do is apply! The ads go on to state that the money can be used for anything, including debt consolidation , student loans, a yacht or just about any frivolous thing you can imagine. All you need to do is call their toll free number, buy their book or enroll in their program and the details are soon on their way to you.
What Your Mama Never Told You About Debt Consolidation Services
When someone is extremely deep in debt, and he or she has no other options to prevent bankruptcy, debt consolidation can be his or her savior. Debt consolidation can also be a very wise choice for someone who has many debts on high interest credit cards.
16.4% APR $5,000 Auto Loan...HELP!
Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:DEAR LoanResources.
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.
Debt Consolidation Loan
Debt Consolidation of Different LoansDebt consolidation refers to the restructuring of a large number of unsecured debts into one low monthly payment, while eliminating interest and reducing the total amount owed to creditors. Debt consolidation has become popular with people as they cope with increasing amounts of credit card debt, home mortgage loans, car loans, and student loans, along with low credit ratings and threatening phone calls from creditors.
The Benefits of Debt Consolidation
It is quiet easy to get into financial difficulty having a home mortgage, a car truck or SUV loan and credit card repayments. There are now considerably more individuals than ever before with greater debts than they can afford.
Debt Consolidation Makes Sense Only with Low Interest Rates
Credit that cannot be managed or is not being repaid requires debt consolidation. Debt consolidation offers borrowers with a chance to repay their high interest loans at low interest rate.
What is Debt Consolidation?
Debt consolidation may be the answer for anyone drowning in a sea of unpaid bills. Debt consolidation lumps all of your unsecured debts including credit card bills, doctor, dentist, veterinary, and other service provider bills - any bills that are not secured by collateral or property such as an automobile or a house - into one monthly payment.
Debt Consolidation Loan and Consolidation Loans
Debt consolidation loan services act as a third party intermediary to assist you in negotiating lower interest fees and monthly payments with your unsecured debt holders. If you are falling behind on your monthly payments, as many consumers are, you can quickly build up late fees and over limit fees.
Debt Consolidation - Options for Reducing Your Debt
Studies show that Americans are now saving less than ever before. Along with that, Americans are carrying a heavier debt load than ever.
Use Caution When Entering Into Debt-Consolidation Loan
To the person drowning in debt, a debt-consolidation loan looks a lot like a lifesaver. But agreeing to such a loan without understanding it completely could be a serious mistake.
Debt Consolidation Company and Companies
Debt consolidation companies have dotted the debt solution landscape as a result of the critical financial conditions consumers find themselves in from heavy credit card debt and other unsecured loans. With approximately 80% of Americans in debt up to $10,000, some are exploring a debt consolidation company in order to reduce or eliminate the crushing debt load that they carry.
Online Debt Consolidation - Devising Newer Ways for Changing Consumer Trends
Consumers today are getting wiser by the day. They are educated and enlightened.
Escape the Credit Card Death Spiral
You're burdened with crushing debt and at the end of your rope. There's got to be a way out.
The Pros and Cons of Debt Consolidation Loans
You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment.
Debt Consolidation Mortgage: Home Solutions for Integrating Arrears
Credit card debts, auto loans debts, secured loans debts, unsecured loans debts - debts of all sorts and types registered against your name. It is hardly a very promising situation.
Debt Consolidation Benefits
If you've ever been in a situation where you needed money that you didn't have, you probably already know about loans and credit cards. Here is a brief Explanation on What both are:LoansA loan is a type of financial aid which must be repaid, normally with interest.