How To Use Secured Loans For Debt Consolidation
Although secured loans can be used in a wide variety of ways, one of the most common uses I’ve seen in the past few years is for debt consolidation. In this article I’m going to talk about some positive and negative aspects of secured debt consolidation loans.
It’s good to have this knowledge, because your property is on the line, and if you don’t repay on time, you just might lose it. However, with this info in your head, you should definitely make a better decision.
First, we have to ask ourselves this: Why do people even consolidate their debts with a secured loan when there are so many other attractive options out there? Well, to tell you honestly, there aren’t as many options as you’d think. I know that you might be thinking about unsecured loans, but to be quite honest here, they are very hard to get these days. Even if you have a perfect credit rating, not a single company in the world would give you more than a few thousand pounds any more. It simply isn’t worth it for them. One great company that you should consider can be found here at kiwi money kiwi money
When you have big debt, the best option is to get a secured loan because the lenders are ready to give you large amounts of money if you are ready to secure that amount against your valuable property.
Secured loans for debt consolidation are much better than taking a remortgage. The simple reason for this is that you don’t have to pay any additional redemption penalties. A secured loan is also much easier to get, and much cheaper to get, since there are no additional fees, and you can get it within 3-4 weeks.
Now, let’s talk about when is it actually a good time to take a debt consolidation loan.
The first reason to take is to relieve stress from yourself. It is much easier for you to only pay off one creditor, right? Instead of having 3-4 different debt avenues, why not take just one? Keep in mind that you have to be careful not to overpay. This means that if you’re currently paying off at the rate od 300 pounds every month, you don’t want to consolidate your debt just to pay 330 pounds per month to one creditor. You should check out the interest rate and compare it to your current creditors. Sometimes, it is better to sacrifice the convenience for the amount of money that you have to pay off.
Before you consider a secured debt consolidation loan, why don’t you also consider a debt management plan? This allows you to make a single payment, but there will be no further need for borrowing. It might be hard at first, but the positive aspect of this is that there are basically no interest rates involved whatsoever!
What is the amount of money that you should borrow? Well, this depends greatly on your debt, but generally I wouldn’t consider getting a secured loan if your debt is less than L10 000. If it is above this sum, you should consider it, but the best sum range is definitely between L25 000 to L100 000. Remortgaging is a good option if you want to borrow more.
Keep in mind that you should always take legal help when trying to consolidate your debt. On one hand it is a great tool to focus down your repaying, but on the other hand, if you are not careful enough, you might end up paying a lot more than you originally intended to. Also, always keep in mind that you will be under severe pressure, because if you don’t repay on time, your lender can actually repossess your property.
Top Benefits of Secured Loans
Secured loans are a very popular type of lending. Why do so many borrowers opt for this kind of loan? The answer is the benefits of a secured loan are unmatched by your typical unsecured loan. Read on to learn the advantages these loans offer and why they might be the perfect solution for your borrowing needs.
Many types of loans are so limited and restrictive is can be difficult to be eligible or use them effectively. With a secured loan you can expect better terms and fewer hoops to jump through. Some loans can only be used for a very specific purpose, making them even more limited. This isn’t the case with a secured loan. You are free to use it for whatever purpose you need. Whether it is for personal or business reasons, this kind of loan can help you out.
Borrow More Money
Unsecured loans usually cap out at around 25,000 pounds. Especially with the current economic conditions, lenders are hesitant in handing out unsecured loans. Securing your loans allows you to borrow up to 100,000 pounds or more. Making extensive home improvements, purchasing a vehicle, or funding a business start-up all need a sizable amount of cash. A secured loan can get you the amount you need.
Pay Less Interest
Another benefit you will appreciate is the much lower rate of interest in comparison to other loans. A loan with a low interest rate is ideal for the borrower. The loan becomes cheaper, which means you have to pay back less than you would normally. Save yourself some money in the long-term by getting a loan with the lowest interest rate possible. The key figure to know about is the Annual Percentage Rate of the loan (usually referred to as APR).
Poor Credit Rating? Not a problem.
The beauty of using collateral to secure a loan is that your past credits history is much less relevant. Did you recently apply for a loan and was turned down? Or did you check you credit rating and found that it isn’t very good? You can still get the loan you are looking for. Since you are offering property or some kind of security, the lender will be happy to accept your application.
There are many private loan providers which can provide a fast track service, so you can quickly put your finances in order. One such online provider can be found here: www.appleloans.co.uk. As a leading UK loans provider, Apple Loans is perfectly suited to meeting your financial needs. Applying is a very easy process. Visit the above mentioned site, fill in the form. That’s all you have to do. You will quickly find out the decision on your request. Expect a response in 45 minutes or sooner. You won’t be left waiting and wondering. It doesn’t matter what your past credit rating or profile is, all applications are carefully considered and the most appropriate loan will be offered.