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Debt Consolidation Loans27/08/2007 20:08:02 A loan that is secured on the applicants home address for the purpose of Debt Consolidation. The loan is generally used to consolidate (pay off) all existing credit by putting it into one secured loan and this generally reduces the monthly payments and therefore frees up more of your monthly income to use for more exciting purposes than clearing credit cards, store cards, loans or hire purchases! Sometimes the only way in which the monthly payments can be reduced is by taking the Secured Loan over a longer period than what the existing credit is currently on. This can increase the amount in total that you will pay back but customers who take a Debt Consolidation Loan generally are more interested in the reduced monthly outgoing on credit. A Secured Loan can be used for other purposes besides Debt Consolidation and Home Improvements. They can also be used for a Car, or Wedding. Generally Secured Loan lenders do not raise finance for Business. For a Business Loan it may be a better route to contact your local Bank or Building Society. Many people have credit cards, loans, hire purchase agreements and catalogue or mail order bills. What’s frustrating about having various items of outstanding credit is that they all need to be paid at different times and it can often involve a lot of juggling of your finances to make sure they all get paid the correct amount and on time.Credit Cards are a fantastic example of an item of credit that just never appears to go away. Credit Cards can take years upon years to clear if you just make the minimum payment every month. If you continue to use your credit cards the balance could be rising slightly month on month. More and more people are securing loans against their property to put all of their outstanding finances into one monthly payment. There are many options for customers in varying financial situations. It is easy to disregard how much you currently owe on credit cards and loans. If you take 5 minutes to write down everything you owe the final figure may shock you. You may also be surprised as to how you are managing to make payments on these items every single month. If you find that a large proportion of your salary is going towards paying this unsecured credit then you may want to think about a Consolidation Secured Loan. Many Unsecured Lenders will only let you take loans over a maximum period of 7 years. Secured Loans are different. Yes, you can take Secured Loans over 5 or 7 years but you also have the option with some lenders to take the loan up to 30 years. Obviously this could massively reduce your monthly outgoings – therefore meaning you are left with more money in your pocket at the end of every month. Taking the loan over a long period should take some careful consideration however, as you will probably end up paying a larger amount back once the loan term is over. It really is a question of whether you need to free up more of your money now or not. Imagine how good it would feel to know that you only have your Mortgage payment and Secured Loan payment going out every month – rather than 4 Credit Cards, 2 Loans, 1 Hire Purchase and 3 Store Cards. Written by Skye Maidstone of Loan Machine Secured Loans |