Low Rate Debt Consolidation Loan

debt consolidation

One of the most popular assistance available for those who are in a bad credit situation is a debt consolidation loan. Debt consolidation loans may be provided by a bank, credit union, merchant association, finance company or a debt consolidation company so that the borrower can pay off his debts from different creditors.

Lower Interest

Usually borrowers can avail of a debt consolidation loan for a lower cost of interest and a wider range of repayment terms that they can choose from. It is very important for the borrower to make sure that the interest rates on his debts will be significantly reduced if he obtains a bad credit debt consolidation loan. If not, it will not be of much help at all. If you have a debt with a lower interest rate than what your debt consolidation company offers, do not include that debt with your loan.

More Payment Terms

The different repayment terms are also important to consider. The availability of various payment terms enables the borrower to choose the best repayment option that is most suitable to his financial situation. Thus, a personal debt consolidation loan prevents the possibility of a borrower defaulting on his debts.

For those who are having a hard time keeping up with their debts from different creditors, a debt consolidation loan may be best. By consolidating debts, a borrower only has to remember one monthly bill at much a lower rate of interest. Generally, the monthly payment for a debt consolidation loan is based upon the lowest amount of payment that is accepted by your creditors.

How You Can Make it Work

However, a debt consolidation loan can only be successful if you make it work for you. Most people who have obtained a debt consolidation loan are on their way to debt recovery. But the problem starts again when they began to use their credit uncontrollably before they even get to pay the rest of their debts. Even worse, the new debts they incur are not part of the debt consolidation loan, making repayment more difficult.

If you’re going to obtain a bad credit debt consolidation loan, you need to have a budget plan and stick to it. Debt consolidation will be senseless if you’ll continue to delay with your monthly payments. If you really want to get off the load of bad credit you really have to work hard for it.

Have a clear goal and work towards that goal. For instance, your goal would be to pay off your debts in a span of 3 years or less. How can you achieve this? Why not make some adjustments with your lifestyle or your daily spending so you can save on your monthly budget?

If you live with your family, why not talk to your family members and encourage everyone to have their share even just by doing simple things like conserving electricity and daily expenses.

More importantly, obtaining new debts is definitely a big no. Don’t put yourself in a deeper trouble that you’re already in. Yes, it takes a lot of discipline and determination to make debt consolidation work. But it can be done and if many have been successful with it, so can you.

Passive Income
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debt consolidation

I would like to get a debt consolidation loan for my outstanding debt from closed credit cards, old utility bills, etc

I have student loans, but I would like to consolidate them separatley and not through another loan.

Also, I have an auto loan, would the loan be able to cover that as well?

Please, real answers, and no opinions/judgements.

Thank You.

Quick Property Sale

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Comments (2)
debt consolidation

I’m am not very far in debt but need help getting back on my feet. Everytime I apply for a Debt Consolidation Loan I am denied. Who would approve me? Does anyone know.

Quick House Sale
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Cheap Loans: Arrange Funds Economically

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cheap loan


Many a times, when your requirements do not meet your financial capabilities, you desperately look for other options to raise money. After a while, you decide to go for a loan, but you feel apprehensive because of different loan plans and high interest rate. But with a cheap loan you can find a simple solution to your worries.


A cheap loan can be availed with a thorough research work in the loan market. A comparison analysis is required in order to avail a loan on competitive interest rates.


The cheap loans can be easily attained by a bad creditor. Through these loans a borrower can easily attain low interest rates. Moreover, cheap loans are a great way for the bad creditors to start rebuilding their credit status and improve their image.


A cheap loan can be used for various purposes like payment of educational bills, funding college education, home improvement and debt consolidation. A cheap loan is suited best for debt consolidation. If allows you to manage to pay off all your debts at a lower interest rate. Thus, it enables you to save a lot of money with your cheap debt consolidation loan.


A cheap loan is bestowed in the either of the forms- secured cheap loan and unsecured cheap loan. A secured cheap loan requires a borrower to attain a loan against a security. The borrower is required to pledge collateral in form of home, property, vehicle or any other valuable document to avail a secured cheap loan. These loans are endowed with low interest rates, longer repayment duration, easy repayment, flexible terms and large loan amount.


However if an individual doesn’t want to put his property at risk by offering it as collateral or doesn’t have any then he can go for an unsecured cheap loan. These loans save a lot time as well as money by removing the lengthy documentation and paperwork.


Thus, cheap loans are designed to help individuals borrow loan that goes well with their individual financial conditions. Speed and right timing are the factors that rule the loan market. This is the reason why cheap loans are quick and easy to borrow.

Quick Property Sale
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debt consolidation

I would like to consolidate my debt and have seen information on debt consolidation loans. I do not own a home but am interested in consolidating my debt. What options do I have?

Real Estate Professionals
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Comments (3)
debt consolidation

we have 3 credit cards with 15K debt and paying average 15% APR …and we think we should try for debt consolidation personal loan which doesn’t require any collateral or home equity…so based on experience can you please suggest which bank we should contact for such loan?

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Secured Loans: Common Questions, Answered

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secured loan

Secured loans can be an efficient short or long-term funding solution for UK homeowners. If you are in need of money and have equity in your property, you are eligible to apply for a secured loan. Secured loans are sometimes called “second mortgages” as they rank after your mortgage as security to the lender. Secured loans must be registered as a Charge on your property title at the Land Registry.

Why seek a secured loan rather than an unsecured loan?

The strong growth in UK house prices over recent years has meant that many homeowners have built up substantial equity in their properties. Secured loans are simply a flexible way for homeowners to release some of this equity. Compared with an unsecured loan, a secured loan has a lower interest rate as you are putting your home up as security. The lender will be very confident that the loan will be repaid. Another advantage is that secured loans offer more flexible terms of repayment than unsecured loans. For example, the loan term can be for a longer time period enabling your monthly repayments to be kept down. Secured loan terms can be from 3 to 25 years – it can sit alongside your mortgage if you wish or you can pay it off sooner. If you’re in need of a large sum of money, a secured homeowner loan can range from £5,000 up to £1 million. Unsecured loans are normally capped at £25,000.

What can I use a secured loan for?

A secured loan can be used for any purpose. A secured debt consolidation loan can help you refinance expensive debt, such as credit cards or bank overdrafts, on to a much lower interest rate. A secured home loan can be used to finance substantial home improvements to add value to your property, such as an extension or a new kitchen.

Why choose a homeowner loan rather than a remortgage?

A mortgage is your cheapest form of borrowing and if you want to raise a significant amount of money it is therefore logical that you should first consider a remortgage. However, your current mortgage may be arranged on advantageous terms or have an onerous early redemption fee. Redeeming your mortgage may just not make financial sense. In these circumstances it may be wise to leave your mortgage alone and use the flexibility of a secured loan, especially if the interest rate is only a little higher than your mortgage rate. Finally, a secured loan can be completed in less than 20 days – somewhat faster than a remortgage – and at a lower cost. Remortgaging normally requires that you pay certain fees, such as a discharge fee, a valuation fee, a title insurance fee or an administration fee.

Can I safeguard my loan or mortgage payments against unforeseen events?

You can take out payment protection against specific events, such as unemployment, sickness or disability through Payment Protection Insurance (PPI). Remember that PPI is not always suitable for your individual circumstances and independent advice should always be sought before buying this product. Should the insured event take place, the policy will cover your payments for a fixed period of time, such as 12 months. You should also consider buying sufficient life assurance such that in the event of the death of the household’s main bread-winner, the loan or mortgage will be paid off by the insurance company.

How can I apply for a secured loan?

You have the choice of going direct to the lender or going to an intermediary, usually a finance broker. If you have shopped around and know what you want, you can apply direct to the lender via phone, internet, post or walk into their branch office. If you prefer to seek the advice of a finance broker you may benefit from their expertise in deciding what product and which lender is most suitable for you. This will be particularly true if your circumstances are unusual and you require a specialist product. It is also possible that a finance broker can find you a better deal as some products are only available through intermediaries.

How long does the secured loan application process take?

Depending on circumstances and personal needs, you may obtain a secured loan within 2-4 weeks. But, of course, each case is different. Normally, the consent of the first mortgage lender is required to register the secured loan on your property title and so the lender is unlikely to proceed before consent is obtained.

What factors may negatively influence the secured loan application?

When you apply for a loan it is normal that you will be asked to consent to a search at a Credit Reference Agency, such as Experian or Equifax. The purpose is to avoid fraud and for the lender to assess your credit worthiness. Some factors may have an adverse effect on the secured loan application, such as:

Bankruptcy or Individual Voluntary Arrangement

Low income or self-certification of income

Mortgage or rental arrears

Frequent job changes

Frequent address changes

High indebtedness

Court judgments

But even with a poor credit record, you have a good chance of obtaining a secured loan providing you have plenty of equity in your property. However, you may be asked to pay a higher interest rate if your credit score is low.

Is it important to seek independent, impartial advice?

There are literally thousands of loan and mortgage products available. As we only tend to purchase financial products infrequently, you will not know which products are available or suitable without a serious research effort. For this reason, we believe that most people should seek independent, impartial advice, especially as mortgages and secured loans normally represent a substantial commitment. This should not cost you any more as the advisor is normally paid directly by the lender.

What are the drawbacks of a secured loan?

Although there are many benefits of a secured loan, there are some drawbacks that should be mentioned. In cases where a borrower fails to repay a loan, the property could be taken into possession and sold. Borrowers can also be tempted to borrow large sums for long periods without appreciating the commitment to repay a significant amount of interest, even when interest rates are low.

For more information, please visit http://www.burtplan.co.uk

Sell and Rent Back
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secured loan problem

needing to consolidate credit card debt. but would like to in future refinance home soon. will it cause a problem with refinance if secure with home?

Real Estate Professionals
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debt consolidation

A debt consolidation loan is taken in order to repay existing debts that have been merged into a single consolidate debt. Debt consolidation is the process of putting all your outstanding debts together under a single loan head, and then negotiating with your creditors for easy loan terms.

The Aim of Bad Credit debt consolidation loan

The first part of the credit card debt consolidation program is to negotiate with all your debtors and help you merge all your debts into a single manageable consolidate debt. Your debt consolidation company will negotiate on your behalf and get the best possible deal for you, either in terms of lowered interest or increasing the loan term. After this, you need to repay your consolidate debt in installments to the debt consolidation company who will in turn repay your creditors. If it is possible to pay the consolidate loan without taking out another loan, then this is the best option.

Sometimes, it may not be possible to repay your consolidate debt through your savings or income alone. In that case, your debt consolidation firm will advance a debt consolidation loan on easy terms, and low interest rates. Many people may not like the idea of taking out a debt consolidation loan, especially since they are already having trouble managing existing debts. However, unless you tackle your outstanding debts quickly, the interest rates are likely to keep rising, making the situation even more difficult.

Types of Bad Debt Consolidation Loan

Debt consolidation loan is of two kinds, secure and unsecured. If you are looking for easy interest rates and have collateral to offer, then secured consolidation loans are the best option. If you don’t have a collateral, and are saddled with a heavy debt burden, you will have to go for unsecured consolidation loans at higher interest rates.

Online debt consolidation Companies

Online debt consolidation offers many advantages. You can browse through the websites of dozens of debt consolidation companies offering loans, and they even offer free online debt consolidation quote to people. Choose the company offering the best quotes and it will help you consolidate all your debts into a single manageable loan. If you still cannot pay the consolidate debt, you can take out a separate debt consolidation loan for this purpose.

A debt consolidation loan will make life easier for you, taking aggressive creditors off your trail, and help you repay all your credit card, education and other debts.

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debt consolidation

Trying to get help with debt by a debt consolidation loan but I can’t approved. I’m behind on payments so I just keep sliding deeper into debt with late fees and I’m trying to pay it but can’t get the help I need. help!

Passive Income
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