Debt Consolidation through a Secured Loan
One of the most common reasons for individuals to take out secured loans is
for debt consolidation.
Excessive amounts of credit card spending has become almost an epidemic in
the UK, with many individuals owning several different credit cards, each
one maxed out or over the limit. Credit card debt can be especially
troublesome, as these are often the most expensive types of debt, with
percentage fees that can go well over a 20% APR, and cost thousands more
Similarly, student loans, overdraft fees, and several
other credit sources can cause mountains of debt, with the average student
owing over £8,666 according to the SIES, and adults averaging far
With so many different credit sources
Debt consolidation has become one of the primary uses for a secured loan.
Rather than pay off these high interest rates, a secured loan allows the
borrower to pay all of their debt sources off at once, and instead pay just
one low interest payment to a single lender. This will dramatically reduce
not only the amount of money you owe over time, but also the amount you have
to pay each month.
You can also use the loan to pay for current expenses, and
use the extra cash to make larger payments against your credit card debt, in
order to wipe t he debt away quickly.
Here at SecuredLoansCompared.com, we make the process easier for you. Just
fill out our form, and a specialist broker will contact you with quotations
and comparisons from the top secured loan providers in the UK.