Are Secured Consolidation Loans A Good Choice for Debts?

Adam Brand Adam Brand | Operations Director

At Secured Loan Expert, we specialise in helping people obtain secured loans based on the equity in their homes. These loans can be used for just about anything, including debt consolidation. By consolidating high-interest debt into a single, low-cost secured loan, consumers can lower their monthly payments and reduce the strain on family finances.

We can help you find the best deal on secured consolidation loans through our whole of market lender comparison tables and expert free advice along with a comprehensive library of helpful information. Our goal is to make sure each of our visitors obtains enough unbiased and informative information to enable them to make an informed decision when it comes to choosing the best loan offer to suit their individual circumstances. As experts in secured loans, we want to help you make the most of the equity in your home for debt consolidation, or any other purpose you have in mind.

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Understanding Debt Consolidation

The idea behind using a secured loan for debt consolidation is one of taking advantage of the benefits of a low rate secured loan to pay off unsecured debt that might be costing too much money. So to start with, what is the difference between a secured and unsecured loan?

An unsecured loan is one that is made by a bank or building society based solely on your promise to repay. Personal loans and credit card accounts are two good examples of this type of financing. A secured loan is demonstrably different. Instead of relying only on your promises, the lender making the loan requires you to offer tangible property – usually your home – as collateral. They are then able to repossess and sell your home should you fail to make your payments as agreed.

As you can see, there is some risk involved with secured debt consolidation when you use your home as collateral. You could end up losing your home if you cannot afford to make your payments. It is important for you to work out your monthly budget to ensure you can afford loan payments before you take on any kind of secured loan.

Benefits of Consolidation

The benefits of consolidating your unsecured debt into a single, secured loan are numerous. First, you will have one monthly payment to deal with instead of multiple payments. This benefit alone makes managing your monthly budget easier. Second, your monthly payment on a secured loan is likely going to be less than the combined payments you are currently making.

A third benefit – lower interest rates – depends on your equity and your credit rating. You should be able to get a low enough rate to make borrowing beneficial. However, if you can’t get a good rate of interest then using a secured loan for debt consolidation may not be the best option for your needs. If you have bad credit, it is essential to run the numbers before applying for a secured loan.

The fourth benefit of consolidating your debt with a secured loan is that it allows you to take advantage of the equity in your home. You already know that your home is probably the single largest investment you will ever make. So rather than allowing it to be a constant drain on your finances, you might just as well put it to use to improve them.

A simple, affordable secured loan makes it possible to combine all of your high-interest debt into a more affordable loan with lower monthly payments. Secured Loan Expert recommend this kind of financing for homeowners with established equity. Let us help you find the right loan for your circumstances by taking advantage of our expert help and free advice.

Many homeowners with expensive high interest debts find that using the equity locked in their homes as security for low cost secured consolidation loans is an ideal solution to improve their financial situation. When combined with a budget and disciplined spending habits, secured consolidation loans can be a game changer that positively affects both your short and long-term financial outlooks.

If you would like some free professional advice just call our friendly team of secured loan experts today. We can help you get the loan you need at the lowest possible cost and with the minimum of fuss.

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