I’ve been speaking to my collegae David Allan (lendingexpert.co.uk) about how many debt consolidation loans we recieve. This has got to be one of arears of finance and secured loans that is growing the fastest at the moment. There are so many people out there with debt problems and who are paying far too much in interest payments and who don’t realise just how much money they could save by consolidating their debt to 1 larger secured loan.
Debt consolidation is really simple and just means that you “consolidate” – move all your current debts to one larger secured loan that is not only cheaper but also easier to manage on a monthly basis. Debt consolidation only makes sense if the loan you can move your current debts to works on cheaper (lower APR) and helps you to finance your finances better. Don’t confused a debt consolidation loan with a debt management plan (DMP) – they are completely different.
Its also important that if you move unsecured loans to a secured loan then your home my be at risk if you do not keep up the repayments or fail to pay back what you owe to the lender.
Sam Groundy 