Let us tell you a bit about consolidation loans. Often a great way of saving money and getting people on the road to debt-free life as quickly as possible. They seem to get mixed press for a variety of reasons, so we'll highlight those factors here.
If you take your existing debts and rearrange to pay them over a longer period, even at the same rate of interest, then your monthly repayments will decrease but you'll end up repaying more in total. Even in that situation personal debt consolidation loans can still be a good thing if the person was unable to meet the regular monthly repayments on the original terms and was incurring penalty charges. The real benefit of a consolidation loan comes from reducing the amount of interest being charged. Just moving existing debts away from high interest rate deals can rack up some pretty big savings. Ask us for a quote against your existing debts and weigh up the advantages yourself.
Why bother with a secured loan? Good question - it may seem preferable not to put your home up as security for your loan unless you have. In reality the liklihood that any company will move to repossess your home is very slight and only ever undertaken as a last report on very large debts. It is unlikely to matter whether you loan is secured or unsecured, if you are unable to repay your loan according to the original terms, a lender will work with you to arrange a convenient repayment schedule.
What a secured loan can do however is make larger loans available to you and allow you to spread your repayments over longer periods of time.
If you already have a level of personal debt that has been built up through a combination of unpaid credit cards, store cards and various other types of lending, then there's a good chance that merging these various debts into a single item, known as debt consolidation, could bring simplicity and a lower cost in interest charges. If you tell us about these other debts when we speak to you, our staff can investigate any consolidation loan options available to you.
The interest rates charged on store cards and some credit cards can be very high, sometimes three times as high as an equivalent consolidation loan, so the options for saving money are fairly likely.
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