Guaranteed Low Rate Debt Consolidation Home Equity Loans!

Alex Parsons Alex Parsons | Secured Loan Expert

If you were asked to describe the primary functions of your home, what would you say? Would you include consumer financing as one of them? If not, you should. You can use the value of your home as a means of financing just about anything, including a debt consolidation strategy. Debt consolidation home equity loans help consumers regain control of their finances by eliminating high-interest debt.

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Consolidating your debts means taking on a secured loan to pay off multiple debts at higher rates. The result is a single loan with a single monthly payment. Would that not be nice? Consolidating your debts means no more shuffling funds around to try to pay multiple bills every month. Instead, you can easily budget for the one, single payment you will be making.

Borrowing on Equity

The key to debt consolidation is equity. What is equity? It is the difference between what your home is worth on the retail market and the amount you still owe on your mortgage. If you owed £75,000 on a property worth £120,000, you would have £45,000 in equity. You could then take out a secured loan based on that amount.

Property owners who use the equity in their homes as a financing tool have discovered what a great tool it is. Maintaining equity in your home means you are becoming your own personal banker every time you take out a secured loan. For debt consolidation purposes, there is no better financing tool than a secured loan based on equity.

Saving Money

You like saving money, right? Saving money is exactly what a debt consolidation home loan lets you do. We will illustrate this money saving reality through the following example:

Imagine you have two personal loans and a credit card with outstanding balances of £100 each. The personal loans carry a 7% interest rate while the credit card sits at 12%. If you paid off all three balances in one year, the total amount of money you would pay (less fees and charges) would equal £326.

Now let us imagine combining all three balances into a secured loan offering a rate of 5%. At the end of the year, your total outlay would be £305. You would have saved £21 by consolidating. While this is a simplistic example, it illustrates how debt consolidation works. You save money by combining high-interest debt into a single, low interest secured loan.

Cheap Money

Secured loans are sometimes known as 'cheap money' in the banking industry. This is because the interest rates and associated fees for secured loans tend to be significantly lower than other types of consumer financing. As you might guess, some secured loans are cheaper than others are. It pays to shop around before accepting a loan offer.

Secured Loan Experts can help you shop by offering side-by-side comparisons among our whole of market panel of the top UK secured loan lenders. The five most important things you need to look at are annual percentage rate (APR), representative APR, loan-to-value (LTV) ratio, loan term, and maximum loan amount. These are all benchmarks that you can use to determine which lenders are likely to give you the best deal.

The cheapest secured loans are those that offer you the best interest rates with the lowest fees and charges. Some lenders advertise the combination of interest and loan fees as the representative APR. This number gives you a good idea of the total cost of borrowing over the life of the loan. Pay close attention to it.

Consumers all over the UK are wiping out high-interest debt and regaining control of their monthly budgets by taking on debt consolidation home equity loans. By borrowing tens of thousands of pounds against the equity in their properties, these homeowners are giving themselves the opportunity to pay off high interest debt that would otherwise be overwhelming. You might want to consider it an option for yourself if you own a home with equity.

Our friendly team of secured loan experts are on hand to help you with any questions you may have about consolidation loans without any obligation on your part. They will use their knowledge of the market to find the best possible deals that suit your individual circumstances and use their relationship with the top lenders to secure you the right solution.

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