Debt consolidation loans
are a means for those who own their own home to bring their
old loans repayments under control. They
are rather like a medicine for a bad condition . . . runaway
financial unfluenza. And like any strong medicine they need
to be approached cautiously. An adverse credit
rating is influenza turned to pneumonia . . .. it's getting
critical, but there are ways of handling it.
Paying off a pile of debts by taking
another debt can only work if the second
debt is for a longer term, at lower repayments than the
sum of the problem debts. Otherwise the cure is likely to
be as bad as the disease. If you are have a bad
credit rating and are trying to rebuild it, go
to our refused
credit page and read on.
Click and compare online
Old loans at high interest
rates from the past can often be tidied up in a
parcel at today's much lower rates, and
if you have excess value in your home which can secure a
consolidation loan, why not? Click on the button to compare
the offerings . . .
The pros and cons of debt consolidation
Debt consolidation loans are usually
secured by a second mortgage on your home.
This is important. bad things result from
a failure to pay secured loans. You take a debt consolidation
loan because you are already unable to cover your exposure.
But you are paying off a debt by
taking on a debt, and the cure might end up worse than the
disease . . . now you have a secured loan, worse MEANS worse.
A secured loan is taken out with collateral put at risk.
Should you default on the repayments of a secured loan,
the collateral could be repossessed.
So, even if you are paying off your
mortgage comfortably, if you can't pay off your secured
debt consolidation loan then you can be forced out of your
Cheap debt consolidation loans online
Debt consolidation operators are not
your friends. Their main selling point is reduced payments,
and the secondary point is usually called "debt restructuring".
It's just another, more locked in form of debt, at the end
of the day.
So why would you do it? Maybe you
can't make your credit card payments every month, but you
could make the monthly payments on a debt consolidation
loan. If you opt for debt consolidation then you must be
absolutely sure that you would still be able to make payments,
which means being insured for illness, disablity and unemployment.
For more information on this aspect fo debt consolidation,
link. If you can't make your payments, then you could
lose your home.