Debt Consolidation Tips
By John Mussi
Here are some useful Debt Consolidation tips. Debt consolidation is a loan
used to repay several other loans. Debt consolidation loan takes the group
of debts that you owe, and consolidates them into one. In other words it
combines several debt obligations into one debt.
If you find you have several monthly payments on a number of different loans
you can make things easier for yourself by bringing them all together and
taking out one single loan to pay off the total debt. This would mean that
you only have one monthly payment. Paying off one large sum of money rather
than lots of smaller debts is easier to manage.
You will make one monthly payment where you had been making multiple
payments before your Debt Consolidation loan started. You only have to
remember to make one repayment each month, rather than trying to juggle and
keep track of several different ones.
The aim of a debt consolidation loan is to lower your monthly payments thus
taking away some of the pressure on you. You can usually find a debt
consolidation loan with a lower interest by securing it on your home. A
lower monthly payment can be obtained by increasing the term of the loan.
With a Debt Consolidation Loan you can borrow from £5,000 to £75,000. Debt
Consolidation Loans secured on property can be repaid over a period of
between 5 years and 25 years .
Debt Consolidation Loan rates are variable, depending on status. Monthly
repayments will depend on the amount borrowed and term.
Remember that this Debt Consolidation loan is to pay of the existing debts
and that all the regular bills will continue to appear and will need to be
constantly cleared too to avoid a similar situation in future. Hence you
need to take complete stock of your financial situation whereby you need to
have money to pay off monthly bills, mortgage repayment and other
Should you be unable to make your loan repayments, the lender has security
collateral in your home, therefore continuous failure to pay back the loan
repayments could result in the lender legally taking possession of your
You may freely reprint this article provided the author's biography remains
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find
the best available loans via the http://www.directonlineloans.co.uk website.
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