In the process of living up to all the financial needs, one can easily get himself into a situation when you get surrounded by multiple debts with very high interest rate. You get frustrated and perturbed by the phone call of lenders asking you to clear your debts. Here comes debt consolidation to your aid. With debt consolidation loan you can merge all your debts into one by borrowing money from a lender offering debt consolidation loan. After consolidating all your debts you have to pay only to a single lender. So, debt consolidation loan helps you to secure mental peace along with reducing the amount that you pay as monthly interest.
Debt consolidation comes in both form secured as well as unsecured. Secured loan will ask you for some collateral and in return you get lowered interest rate and flexible repayment options. Unsecured loan will help you to get loan without any collateral. Hence, it can be used even by tenants. However, only pitfall of unsecured debt consolidation loan is that you will have to pay higher amount as interest.
Debt consolidation loan: amount and interest
With debt consolidation loan you can borrow an amount between £30000 and £50000. Interest rate with secured debt consolidation loan is around 8%APR and it is around 12%APR in case of unsecured loan. However, due to huge influx of lending firms you are always in a comfortable position to get a better deal by using your wits to negotiate with lenders. Before deciding on a particular offer it is always advised to carry out an extensive search of the lenders and their offers.
Debt consolidation loan: benefits
It helps you to get rid from multiple debts like credit card, store bills or other such pending debts. Amount you end up paying reduces as you have to pay to a single lender. You get mental relief. Apart from these debt consolidation loan can also be used to improve credit score which is badly hit during phase of multiple debt. You are just required to make payments in time which is not difficult as you are paying to one single lender.
If you are a victim of multiple debts, don't get bothered any more and think your entire financial problem to be solved. It's all because there are a number of lenders offering debt consolidation loan and it is available even for those who suffer from poor credit score.
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