Consolidating your debts with a UK secured loan

Consolidating your debts with a UK secured loan

A UK secured loan can enable you to consolidate debts and reduce your monthly outgoings by paying off all of your bills and ending up with just one monthly payment which is usually much lower than the total of all of your current payments combined.

As an added bonus, a secured loan usually comes with a much lower interest rate than what you are probably being charged on your outstanding credit card or unsecured loan balances. Of course, you can get a loan for any legal purpose, it doesn’t have to be solely for debt consolidation.

UK secured loan uses your home as security. The lender takes out a lien on your home which gives them the right to foreclose on it if you default on your loan. Lets say that you do take a secured loan for debt consolidation purposes. There is a fundamental concept that you really need to understand, especially since you are risking the loss of your home should you default on your loan. That issue is your understanding of why you are in debt to begin with and how you are going to ensure that you don’t return to that situation after you have used all of the proceeds from your UK secured loan to pay off your current debt.

If you have loose spending habits, or a serious problem such as drugs, alcohol, or gambling addiction that is at the root of your debt problems, then it is unlikely that a secured loan is going to solve that problem for you. You need to attack the root cause of your money problems. Otherwise, your secured mortgage will become just one more debit burden, and one that could literally have you living on the street, if you mishandle your UK secured loan obligation.

Interest rates on a UK secured loan

Assuming that you do not have any unusual debt-related issues, and you simply ended up owing more than you can comfortably pay over a period of time, like most debtors do. Then a secured loan can be a wonderful way to get relief. Interest rates are lower on a UK secured loan because the lender has less risk. You can stretch payment terms out for a long enough period of time, so that they are much lower than your current bills. This gives you some money left over to save, invest, and just take a breather now, and then without worrying about debt collectors harassing you.

Can I get a UK secured loan?

You can even get a UK secured loan if you have some CCJ problems, have ever been in arrears, or have any other credit blemishes. You may find that you can get a UK secured mortgage if you have a discharged bankruptcy in your credit history. Again, this is because a lender has your home as security, and they feel that, it is less likely that you will default on your loan as a result.

So, if you are saddled in debt and are a UK homeowner with even less than perfect credit, look into getting a UK secured loan. It will make a big difference in your attitude and lifestyle. Understanding a UK secured loanor other credit application, who have not been rejected but who simply want to borrow more money, than can be had on their signature alone. If you default on the loan then the lender can foreclose on your house in order to recover their money.

How can I use a UK secured loan?

You can actually use the money for any purpose including sending the children to college, buying a car or boat, or taking a long holiday.  Even if your credit is less than stellar, because a secured loan offers less risk to the lender. That same reduction of risk often results in a lower interest rate as well because the UK secured loan is more likely to be paid back, when you have your house at risk.

While there are no guarantees on this, there is a chance that a lender will work with you and be flexible, if you find that you are temporarily unable to keep your UK secured loan payments current. Foreclosing on a home is a long and complicated process that no lender wants to go through unnecessarily.

Like with any loan, if you are having problems making your secured loan payment it is best to advise the loan company at once. They are more willing to help you find a solution, including possibly refinancing your loan, when you come to them before they have to come to you.

Because there is a lot of paperwork that needs to be filed, including a lien on your home, a UK secured loan takes longer to process than you might expect. None the less, the lower interest rates make waiting for your Uk secured loan more than worth the effort. So, if you find yourself in the need of some cash, and traditional loans just aren’t working for you, take a look at a UK secured loan. It just might be exactly what you’re looking for.

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