Debt consolidation loans

When you should take debt consolidation loans UK

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The modern life is lived on the basis of debt because people seldom have cash in hand to make large purchases like a house, car, or even household appliances. Then there are the credit cards which have a very high rate of interest because they are unsecured loans. There are also other unsecured loans like personal loans which people take to meet sudden emergency expenses or even for purposes like their yearly vacation. All said and done the average individual is burdened with debt and this debt situation may very easily get out of hand. A person may be laid-off or face a salary cut unexpectedly throwing a carefully planned budget out of kilter. Or due to poor financial management end up in a situation where the debt situation becomes unmanageable.

Why debt consolidation loans

If you have too many different high interest loans then you can consolidate your debt situation by taking a single debt consolidation loan. There are two types of debt consolidation loans UK – secured loan and unsecured loan. The secured loan is the one that has a collateral against it and hence the lender is taking a lower risk due to which the rate of interest on a secured loan is lower than an unsecured loan. However, if you do not have any asset to offer as collateral then you should opt for an unsecured loan.

What you should bear in mind

First of all the rate of interest on the debt consolidation loan should be lower than the cumulative interest that you are paying on all your loans put together. The loan should be large enough to pay off all your existing loans and leave you with one single loan. You should be able to afford the EMIs of the debt consolidation loan. You can even get debt consolidation loans for bad credit UK, so you need not worry if you don’t have perfect credit. If you have bad credit and are in need of a debt consolidation loan or any other kind of loan then you should approach a loan broker in the country.

Benefits of opting for a loan broker

There are many benefits of opting for a loan broker and most important one is that they can avail loans for you even if you have bad credit. They have associations with many specialist lenders who take into consideration factors other than your credit score when approving your loan. For instance, they may consider the fact that currently you have a stable job and you will be able to repay the loan with your monthly income and expenditure.

You will get a debt consolidation with bad credit very easily if you have a guarantor. But if you have no guarantor then you will have to opt for debt consolidation loans for bad credit no guarantor and here as well loan brokers come into the picture. This is because these loan brokers present your case to the lenders in such a way that they are convinced that you intend to repay the loan and also have the ability to do so. At the same time, even if you have bad credit a no guarantor the loan brokers are able to get you loans with quite reasonable and affordable rate of interest.

 

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