Debt Consolidation: BE DEBT FREE--The different ways to consolidate your debts. by:Mike Clive
A debt consolidation loan is a loan taken to consolidate a number of loans into one manageable loan
. A debt consolidation loan can also help you in reducing the cost of your total debt as it usually carries a lower rate of interest than other loans, such as personal loans, credit cards, car loans, etc. A debt consolidation loan with an extended loan period can reduce the amount of your monthly loan repayments.Thus, there are three main objectives of debt consolidation:
To consolidate a number of loans into one manageable loan.
To reduce the cost of debt.
To reduce the amount of monthly loan repayments.
You may avail different types of loans to consolidate your debt:
Secured Loans
Debt consolidation through secured loans is a logical thing to do since secured loans carry low rates of interest and one of the objectives of debt consolidation is to reduce the cost of debt. However, you must be very careful while consolidating your debt through secured loans since it puts your property at the risk of repossession in case of repeated defaults in repayment on your part.
Unsecured Loans
You may also consolidate your debt through unsecured loans. However, before availing an unsecured loan to consolidate your debt, make sure that it does not carry a very high rate of interest otherwise the very objective of reducing the cost of debt will be defeated.
Home Equity Loan
Home equity loan is a type of secured loan. Home equity is the value left in a house after subtracting the unpaid mortgage balance from the current value of the house. A home equity loan is a second mortgage, which is taken against a house that is already mortgaged.
Low Interest Credit Cards
You can also reduce your debt burden by availing a new credit card that charges a lower rate of interest than your existing credit cards. If you use a low interest credit card to repay your earlier credit card dues, it will greatly reduce your debt burden. This can be even more beneficial when the new credit card offers 0% interest credit if it is repaid within a stipulated time.
About the Site:
http://www.shakespearefinance.co.uk is a Finance website designed to bring you the very best the loan industry has to offer. Specialising in Personal Loans, Secured Loans, Home Improvement Loans and Debt Consolidation Loans the website brings a wide variety of loans from among the ones mentioned from various lenders across the market. Customers may get quotes, call the customer service or simply apply online to access the different loans available. The loans calculator provided also helps to gauge the different parameters that are involved in loan application and approval.
About the author
Mike Clive is a business writer specialising in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Shakespeare Finance as a finance specialist. How To Loose Everything - The Worst Forex Trading Strategy Ever That You Might Be Using by:David Jenyns The Insight Trader Reveals Effective Ways To Deal With Losses by:David Jenyns The Stock Market Report That Wall Street Does Not Want You To Read by:David Jenyns Professional Stock Market Advice Reveals Most Common Trading by:David Jenyns Simple Techniques for Mastering The Best Trading Systems That Turns Big Profits by:David Jenyns Five Smart Steps for Buying a Business by:Bill Mueller Leveraged Income by:Saumitra M Ghotikar Tooting Your Own Horn: Shameless Self-Promotion to Get Ahead by:Joan Schramm Despite Financial Despise Bad Credit Secured Loans at Eyes by:Peter Taylor Top Mutual Fund Companies To Invest In by:Sandra Stammberger Commercial Mortgage Broker -Ally and Shark Wrangler by:Patrick Bedall Market Cycles: The Key to Trading Success by:Althaf Ahmed Improve Your Business Acumen With Audio Books by:Janna Halioris