subject: Remortgages And Secured Loans Used As Debt Consolidation Loans. [print this page] The two words debt consolidation are often written about in the newspapers, seen on TV and spoken about in the office and with friends and it sounds pretty interesting.
Although many people hear debt consolidation, consolidation loans etc.discussed they are nevertheless unsure of the exact meaning of the expression.
Looking attentively at these two words, the meaning of debt consolidation becomes very clear.
Debt must be connected with credit and this is indeed what it is , it is cash that has been borrowed whether it is loans sorts of loans o credit cards, etc.
Consolidation is very self explanatory and obviously means the combining of various things in to the one object.
When you join the two words of the phrase debt consolidation together the meaning becomes clear an d what it is is when different pieces of credit are replaced by one single unit.
Now that we understand what debt consolidation is what we must then do is to decide what can take the place of all these debts.
Those who are non homeowners have only the only method and that is by taking out debt consolidation loans which clear off all the other debt and leave a one debt consolidation loan in their place, Now a days it is very difficult for non homeowners to obtain loans of any sort never mind debt consolidation loans which will by its very nature normally have a high balance.. Some tenants may have have a good bank manager who is willing to help.
Even for tenants the interest rate charged will be less than the interest rates for their credit cards and will find that their monthly outgoings will go down leaving them spare cash monthly to spent on clothes, holidays, etc.
Homeowners are in a much stronger position in that they can arrange either secured loans which is also known as homeowner loans , or remortgages which will replace all the other debt.
Debt consolidation by remortgages cost from under 2% and homeowner loans start at around 9% and this will make the borrower glad that he has found out all about debt consolidation.
