In simple words, debt consolidation is the action of combining several loans. When you have debts piled-up waiting to be cleared. One of the sure shot is to look for a better debt consolidation to finance your trouble. Finance debt consolidation means you would be borrowing money freshly from a new lender to pay off the debts. This in turn means that you have consolidated all your debts under the new lender who has financed and clearing all debts on your behalf.
Secured debt consolidation finance and unsecured debt consolidation finance are two types of debt consolidation finance. In the first you consolidate all your debts again collateral. The amount of loan in this case ranges from 5000 to 75,000. The term of secured debt consolidation finance is 5 to 30 years.
The other unsecured debt consolidation is provided against no collateral. Only income and employment document is considered enough to pass the unsecured debt consolidation finance. The amount of unsecured one ranges from 3000 to 25,000. The term ranges from 3 to 10 years. The rate of interest is increased as compared to secured as the risk involved to the lender is high.
Bad credit like CCJs, IVA, arrears, late payments etc are even allowed to finance through debt consolidation. As such, the rate of interest is slightly higher as the compared to good credit. This increase in interest rate is to minimize the risk of the lender.
Debt consolidation finance is even found in internet. Just you need to fill an online application form that would open avenues for lenders to visit you with offer that suits your budget.
Debt consolidation finance is an easy way to consolidate all you debts. This prevents you to remember different repayment dates. Even stops the lenders from bothering you by ringing your phone or ringing your doorbells. Debt consolidation finance rebuilds poor credit. When you make regular monthly payments then you update your credit credibility in the loan market.