Tag Archives: unsecured
Debt Consolidation Loans – Don't Let Piling Debts Let You Down
If you said yes, then debt consolidation loans are just what you are looking for.
Debt consolidation loans are loans that help you pay off all the debts that are currently tugging at your peace of mind. This loan replaces all the loans you are paying at this time and, therefore, reduces your payments to just one monthly payment.
You can get very attractive rates if you go for secured debt consolidation loans. The interest rates are lower than unsecured loans and you also get the benefit of extending your period of repayment. But in secured loans, you need a property to secure your loan against. The equity value of property should be equal to or higher than the amount you wish to take as loan. However, some lenders offer negative equity on property; that is, if your property is based in a prime location.
Debt consolidation loans are very common in the UK as people combine all their unsecured debts into one, which makes their debt management easy and effective. There are multiple benefits (both financial as well as personal) that debt consolidation loans offer:
There are positive changes that debt consolidation loans bring about in your life. You get rid of unwanted calls from the different lenders, your family is happy, and you get a feeling of relief and contentment. Choose from various kinds of debt consolidation loans and see the difference yourself.
Personal Loans Your Personal Finance Manager
Life is full of uncertainties. You never know what lurks in the next corner you take. And, therefore, we need to equip ourselves better with things that prove to be quite useful. Money is one such requirement and the solution to most of our problems. But it is not possible for us to carry ready cash and put it forth in a snap of fingers.
This is where personal loans come handy. Studies show that people in the UK prefer to take personal loans for every big or small requirement. People here apply for loans for various purposes, whether it is for emergency situations of grave importance like medical requirements, unemployment loans, or it is for something like home improvement or cosmetic surgery.
Personal loans are of two kinds: Secured and Unsecured. Secured loans, as is suggested in the name, require some sort of security from the borrower. Usually, lenders in the UK accept property such as land or house as security. This security is collateral against which the lender would lend the money. And it is this security which provides the lender a sense of security, an assurance that the borrower would pay back the loaned amount, else the collateral would be seized by the lender.
In case of unsecured loans, there is no requirement of any security as such. The lender does provide the money to the borrowers based on his financial history and his past dealings. However, the rate of interest is higher, and the terms and conditions more rigid in case of unsecured personal loans in comparison to secured loans. This difference arises due to the absence of security, which leads to lack of sense of assurance for the lender.
When you apply for personal loans, you can go for either secured loans or unsecured loans; however, you have to make sure that for secured loans, you need to have a property whose equity is worth the amount you wish to borrow. And in case of unsecured loans, you have to meet the requirements set by your lender.