Typically people who decide to apply for a debt consolidation loan have more than two or three debts that they want to pay off and on average owe more than ?5,000 from various different credit commitments. Credit cards, overdrafts, and store cards are just some of the usual credit commitments that people have that they might want to consolidate with a secured loan, or an unsecured loan. If you have a poor credit history and you would like to take out a debt consolidation loan you may be able to take advantage of a bridging loan that is a secured homeowner loan against your home, or any other property or asset that you may have. Bridging finance loans are a very quick debt consolidation loan that can be taken out that is secured on a property, typically the minimum loan amount is ?25,000. The maximum loan amount on a bridging loan will vary depending to the lender.
The main benefit on a bridging loan is that money is made available within two or three days, however it is a more expensive way of borrowing, and typically the maximum loan to value is 80%. Unsecured loans and secured homeowner loans are the more typically used loans to clear up other debts that are outstanding. There are many different ways to find a debt consolidation loan. One of the most popular, and probably the cheapest ways to arrange your debt consolidation loans is to visit your bank to see what they can offer you. Because you do your banking with them, they would know your history and how you manage your financial commitments, and as long as they are in good order your bank should be more than happy to lend you the money that you need to consolidate your existing debts to make your outgoings more manageable. The maximum loan amount that banks and building societies will lend to their clients on an unsecured loan is usually ?25,000. This amount is dependent the lenders criteria, and your personal and financial circumstances.
Debts consolidation loans are one of the most common types of loans that are taken out by the average consumer in the UK, and therefore there are many other lenders other than your high street bank that are willing to lend you the money that you want or even need to consolidate your existing debts. In most occasions taking out a debt consolidation loan whether it being secured or an unsecured loan is going to save you money on a monthly basis and should also reduce the total amount of interest payable over the period of time that the loan is taken out for. Another popular method of taking out a debt consolidation loan is to apply for your loan through the internet. The advantage of looking for a loan on the internet is that there are many price comparison websites that have access to many lenders and therefore can find the best debt consolidation loan for your based on your individual circumstances rather than when you approach a bank, they are only able to offer you a loan from their own products.