Debt consolidation loans may be secured or unsecured. Secured debt consolidation loans come at lower interest rates and their repayment duration is long. But they are limited to homeowners who can pledge their house as collateral to the lender. They also bear the risk of repossession of the collateral by the lender. The other alternative is that of unsecured debt consolidation loans.
Unsecured debt consolidation in UK is fast gaining grounds because of the benefits associated with it. Although unsecured debt consolidation loans have higher rates of interest, but they are safe. Also, their processing time and paperwork involved is less, since no time is wasted in unnecessary property evaluation. Moreover, the provision of unsecured debt consolidation is open to all, be it tenants or the homeowners who don't wish to risk their house.
The lenders may also provide you the assistance of a debt specialist, who would analyse your situation and give relevant advice for managing your debt. But it is recommended that you should survey the market well in advance to look for low interest rates and loan plans that suit you. Even a slight difference in interest rate can save you money, so be very careful before you avail a loan.
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