subject: The Place Of Secured Loans And Remortgages In Debt Consolidation. [print this page] For those struggling with too many debts there is an expression that can get rid of high interest loans, credit cards, etc. and this expression is debt consolidation which can save a lot of money and make life a lot easier.
At the age of eighteen it becomes possible to obtain a credit card, a personal loan. etc. and they can even become a homeowner as they can now take out a mortgage.
This can be the beginning of what can become a very bad habit and that is borrowing too much and too often.
Everyone needs a mortgage for example to buy a home unless they are very well of financially and such a home loan is wise as in the long term property is the safest investment of all
However it is when the habit starts of continual borrowing that problems ensue, and loans, etc. can get out of hand.
The interest rates charged for credit cards is costly and the rates commence at usually from 20% to about the 40% mark or even more.
When paying a credit card the payment that must be made is 3% of the credit card balance, and as such, if the balance stands at 5,000 the lowest payment would be 150.
There are two disadvantages in paying only this sum monthly, and these disadvantages are that the balance hardly declines, and it is twenty six years or so before the cards are paid off.
This is a silly position to be in as well as not being essential.
The simple answer to the burden of high interest borrowing is debt consolidation which is the combining of all other debts which have high interest rates and replaces them with debt consolidation loans.
Those who own their own home can arrange debt consolidation loans by means of secured loans or remortgages.
