Debt Consolidation - Secured Loans

Debt consolidation merges your various loans like credit card loans, auto loans, educational loans, home equity loans into a single consolidated loan that brings down the interest rate and thereby makes it possible to repay your loans with lesser problems.

Debt consolidation can simply be from a number of unsecured loans into another loan, but more often it involves a secured loan against an asset which is most commonly a house .The loan allows a lower interest rate .

Sometimes, Debt consolidation companies can discount the amount of the loan.

Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit Cards carry a much larger interest rate than even an secured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property.

Debt consolidation helps to customers who are facing repossession because of defaults or arrears on debts. Poor credit history loans are another specialty that we deal in. Poor credit history loans serve those customers who have been refused debt consolidation help by other lenders, because they have or had poor credit history.

Student loan consolidation

Student Loans are consolidated somewhat differently, student loans are guaranteed by the U.k. government. Existing loans are purchased and closed by a loan consolidation company or by the Department of Education. Interest rates for the consolidation are based on that year's student loan rate.

The current consolidation program allows students to consolidate once with a private lender, and reconsolidate again only with the Department of Education. Upon consolidation, a fixed interest rate is set based on the then-current interest rate. Reconsolidating does not change that rate. If the student combines loans of different types and rates into one new consolidation loan, a weighted average calculation will establish the appropriate rate based on the then-current interest rates of the different loans being consolidated together.