Debt Consolidation Loans

The process of debt consolidation involves applying for a new, single loan product that you can use to pay off a number of less significant financial obligations. When taking out a debt consolidation loan, the applicant will usually get a much better deal on the rate of interest with an extended loan term that will reduce their monthly outgoings.

Debt consolidation occasionally involves reducing a large number of unsecured loans by means of a single unsecured product, but you will typically find that debt consolidation products take the form of secured loans, which are usually taken out using your home as collateral. As the loan is secured on a property, the risk of lending is greatly reduced which means that the rate of interest offered is much more competitive. In some situations, the lender may even offer the client an additional discount on the loan value.

If you have maxed out your credit cards and you are finding it difficult to meet the repayments then a debt consolidation loan can be an enormous help. Many credit cards are notorious for having excessively high interest charges and the act of taking out a new loan secured on your home or car in order to reduce repayments will enable you to pay off what you owe much more quickly.

If you do not own a property then there are still a number of alternative debt consolidation options available to you that will enable you to manage your original loan commitments more easily. Student loans, credit card debts and other loans can sometimes be combined into an unsecured product although the interest rates will not be as competitive.

Be aware that because of the theoretical advantage that debt consolidation offers a consumer with high interest debt balances, some lenders will take advantage of that benefit of refinancing to charge high fees in the debt consolidation loan.

In addition, some companies will knowingly wait for a client to be backed into a corner so that they must refinance in order to consolidate and pay off bills they are behind on. In certain cases the situation is that the client does not have enough time to shop for another lender with lower fees or they may no be fully aware of them.

Most debt consolidation companies are not involved in this type of activity but it is good to be aware of it.


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SecuredLoans.com is a credit broker. In the case of unsecured loans, the REPRESENTATIVE APR is 9.3% variable. 51% of borrowers get this rate or less Representative example: - £10000 over 60 months at an interest rate of 9.3% per annum. Monthly repayment £206.86. Total amount payable £12416.46.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.


65% of secured loan borrowers should get rates less than our TYPICAL 13.8% APR including those who have credit problems. APR’s are variable in most cases. In some cases a secured loan processing cost may be charged, which is deducted from the loan on completion and included in the interest rate quoted. This charge covers the cost of property valuation, mortgage references, consent to register a second charge, land registry search’s, credit references, staff costs, marketing and variable costs associated with your loan and is on average 8% of the loan amount. The amount of any fee and the actual rate available will depend on your circumstances and will be discussed with you at an early stage. Extending the loan over a longer period can reduce your monthly payments but may increase the total cost of credit.