To define secured debt consolidation loan one can simply consider it as an effective method to bring relief from multiple debts hence bringing down the mental stress level, improve the financial conditions…… and there are many other advantages of a debt consolidation loan. As the loan type is secured you need to offer some collateral against the amount you borrow.
The best part is that secured consolidation loans are easily available even to those people who suffer from bad credit history. There are a number of financial firms who offer these loans at considerably low interest rate. So, with all its benefits secured consolidation loans certainly suits the interest of borrowers of U. K. There are certain problems in financial world which needs to be sorted out at the earliest and multiple debts condition is one of them.
Secured Consolidation Loan: Key Facts
As the name suggests, alike any other secured loan you will be asked for some collateral against the loan amount borrowed by you. The collateral can be in the form of home, stocks, bonds etc. Now, as there is a sense of security with the lender you can avail these loans at fairly cheaper rates. Secured consolidation loans are typically available at 10.9% APR. However, it can fluctuate between 7.9% APR variable to 19.9% APR variable. Also one of the deciding factors for the interest rate is the financial status of the borrower. The rate is generally higher for people with poor credit history.
The amount that can be borrowed depends on various factors: the lender, financial condition of the borrower, value of the collateral, repayment abilities of the borrower etc. In general most of the lenders offer an amount between 80%-125% of the total value of collateral offered by the borrower. An important thing that must be cared about is the repayment term so that no defaults are made in repayments as this can deprive you of the collateral. So if you can pay higher monthly installments, then only you should go for short term repayment tenure. However, the interest rate will be a bit higher. In case you can’t afford to make big monthly payments then long term repayment tenure will be a better option. The interest rate will be comparatively lesser but you will end up paying higher amount as interest.
Secured Consolidation Loan: Process of application
The process of application is very simple. You just need to apply for the loan on internet and your loan application will be forwarded to the lenders offering secured consolidation loan. You have to just decide about the best offer that suits your own interests. You can also verify the authenticity of lender by checking out the list of FSA (Financial Services Authority) regulated firms.
So, with secured consolidation loan with you, you need not worry any more of managing your debts. With a little bit effort in market study and your own financial status get prepared for a hassle free life with no more tensions of pending multiple debts. With secured consolidation loan at your own terms you have to deal with only one lender and it will surely bring down your mental stress level.
Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances. He writes on loans. His ideas can help you rejuvenate your money. To find Personal loan UK, secured loans, unsecured loans visit http://www.ezpersonalloansuk.co.uk