However, those poor credit applicants who can provide an asset as collateral could possibly
get secured consolidation loans for fair amounts in order to exchange their expensive debt for a single and cheaper loan.
You should only accept
a secured consolidation loan if you're comfortable with putting up decent collateral.
Only if you are able to get
a secured consolidation loan with a lower interest rate should you consider consolidating home equity loans, mortgage loans and mortgage refinance loans.
Putting a dent in your debt - to - income ratio can help
you secure a consolidation loan.
Secured loans can only be consolidated by means of
a secured consolidation loan.
When it comes to car loans, the problem is the same, an unsecured consolidation loan will never be able to match the low interest rate that car loans provide due to being secured and thus you will need to refinance the car loan if possible or consolidate via
a secured consolidation loan guaranteed with another property.
Secured consolidation loans and home equity loans are less difficult to get.
Protected and Unprotected Consolidation Loans:
Secured consolidation loans are home equity loans or second mortgages that use your home collateral to guarantee the loan quantity.
There are many options for you to choose from:
a secured consolidation loan, a debt consolidation program, 0 % or a low - interest credit card and then transfer your balance to the new card.
If
you secure a consolidation loan or work with a professional consolidation company to pay off the debts that you were struggling with and then begin charging expenses on those cards while you still have your new consolidation debt, you are, in effect, doubling your debt!
You can find many lenders that offer
a secured consolidation loan.
Normally, the interest rate of
a secured consolidation loan (home equity loan) is low.
Furthermore, a person with equity in their home who obtains
a secured consolidation loan puts the equity in their home at risk.
Unfortunately,
securing a consolidation loan isn't as easy as walking into the bank and asking for one.