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How To Get A California Debt Consolidation Loan

How To Use Debt And Bill Consolidation Services

Low Interest Debt Consolidation: Can That Really Attractive Loan Package Actually Be Hazardous To Your Financial Status?

How Can I Get Credit Card Counseling Debt Consolidation?

Debt Consolidation Programs - Join To Become Debt Free!

How Do I Know If I am Eligible For Student Loan Debt Consolidation?

What Is The Best Method Of Consolidation For Debt?

Vaporize Your Worries Through Debt Reduction Via Loan Consolidation

How To Consolidate Your Debt Even If You Have Bad Credit

Everything You Need To Know About Debt Consolidation Loans

Debt Consolidation Facts: Know Everything About Becoming Debt Free

All The Debt Consolidation Information You Ever Needed To Know

How To Take Out An Unsecured Loan For Debt Consolidation

Is Debt Consolidation Refi The Solution To All Your Debt Problems?

How To Get Rid Of Your Debt With Debt Consolidation Loans

Free Debt Consolidation: Get Relief From Debt For Free

What Is Accelerated Debt Consolidation?

How To Work Through Debt Consolidation Companies To Become Debt Free

Debt Consolidation Help: Become Debt Free!

Credit Card Debt Consolidation - A Credit Card Debtor's Perfect Solution

Credit Card Debt Consolidation: "Simple Ways To Get Out Of Your Credit Card Debt"

What Is A Debt Consolidation Company?

An Introduction To Debt Consolidation Solutions

What Is The Best Way To Pay Off All Of My Debts Using A Free Debt Consolidation Loan?

Why Should Montana Residents Consider Montana Debt Consolidation Programs Over Larger National Programs?

How Do Debt Consolidation Agencies Work?

Secured Debt Consolidation - The Perfect Solution For Your Debt Crisis


Debt consolidation involves taking a loan to pay off two or more existing debts. Loans not backed by a collateral, such as personal loans from family members and friends, are unsecured loans. Debt consolidation backed by a collateral, such as secured personal loans, a second mortgage on the home, an advance on an existing mortgage, or a re-mortgage are examples of secured debt consolidation.

Secured debt consolidation is another term used to describe a home equity loan or a second mortgage on a fixed asset. Home equity refers to the worth of a home; when a homeowner takes out a "home equity loan," he is taking a loan out against his house in order to get a higher amount of credit and more favorable interest rates.

While secured debt consolidation is easily available, it must be availed only after due
consideration of the benefits as compared to the drawbacks.

The biggest risk involved with secured debt consolidation is that it puts the house at risk. If the homeowner defaults on payments, he must then forfeit his house.

Secured debt consolidation is long term in nature. These loans often run for a length of twenty to thirty years. Although the interest rate is not very high, the long tenure of the loan means that at total repayment being made towards the secured debt is more.

However, the option of secured debt consolidation is not without its benefits. The immediate cash outflow of the borrower falls drastically, thereby reducing the stress and tension that the multiple payments and varying rates of interest caused. The smaller monthly payment provides
the borrower with breathing space to sort out his finances.

If the amount involved in the debts being consolidated is high, the client is offered secured debt consolidation only. Unsecured consolidation loans bear a high rate of interest and provide very little relief to the borrower.

It is important to realize that secured debt consolidation is the best solution to debt crisis if the consolidation is accompanied by an improvement in financial planning and by disciplined borrowing.

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