subject: Debt consolidation with a secured loan by:David Lynes - Loans4 [print this page] A secured loan is a loan that is available to homeowners, and this is because these loans are secured against the home. With equity levels rising steeply over recent years, secured loans have become a popular, affordable, and effective way for many homeowners to raise money, and the finance raised through this type of loan can be used for one of a range of purposes.
One of the popular uses for homeowner loans is to consolidate debts, as many homeowners that are also juggling a range of debts with different creditors find that consolidating all of these debts with one convenient, low cost loan saves them time, hassle, stress, and money. Debt consolidation with a secured loan can mean that your monthly repayments are reduced by a significant amount in some cases, and you have fewer financial commitments and creditors to deal with.
One of the main benefits of secured loans is that the borrowing power is greater than with unsecured loans based on your equity levels, and this means that even if you have a high level of existing debt you may still have the borrowing capacity to consolidate it all into one loan. Another benefit is that secured loans offer longer repayment periods than unsecured loans, and this means that you can spread your loan over a longer period and reduce your monthly outgoings.
In the current financial climate, where credit conditions for unsecured borrowers are very tight and where additional cost of living rises are putting increased strain on household finances, it is important for many homeowners to try and reduce their monthly outgoings so that they do not struggle to make their mortgage repayments and risk getting repossessed. Consolidation of higher interest debts, which may be costing you a small fortune each month, with one lower interest secured loan could make a huge difference to your monthly finances.
There are a number of lenders that offer competitive rates on secured consolidation loans, and in order to find the most competitive deal for your needs and circumstances you should make sure that you browse and compare a range of secured loans from a number of lenders. Even those with bad credit can often get access to secured consolidation loans, although the interest rate on secured loans for those with bad credit are likely to be higher than those offered to those with decent credit.
If you feel that you do not have the time to browse and compare secured consolidation loans it is worth considering the services of a specialist, reputable broker, as an experienced broker will already have established links with lenders that offer secured consolidation loans, and will be able to compare suitable loans on your behalf based on the information that you provide.
About the author
David Lynes
Loans4 provide homeowner loan solutions for homeowners. Please visit http://www.loans4.co.uk for the latest finance related news.
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