Having a good job is one of the reasons why people can buy what they need and want. Some people are pretty strict in spending their salary but others are extravagant which sometimes makes their spending wasteful. Buying a lot of things until you consume all of your money and savings can lead to debt. Unexpected circumstances like death, sickness, unpaid dues and other financial problems can also lead to debt. Many times it happens that there are dues pending or installments not paid. This is quite possible if the person has taken loans from outside etc. But what can you if you are stuck in such a position? One great way is to have another debt to pay some or all of the current debts. Debt Consolidation is one of the loan services offered nowadays by almost all the financial institutions.
The process of consolidating all the dues into one single unit is known as Debt Consolidation. It is a great finance, as with it you can pay off all the other loans and instead pay only one. It also turns out cheaper as in total the interest rate is lowered down. These can be of two forms which are secured and unsecured. The candidate under this type is given an amount that ranges from 250 pounds to 250,000 pounds for a period of 6 months to 25 years.
In the former kind that is secured type, the debtor places an asset as security for the loan. The interest rate is low in such case due to collateral backing. This gets the borrower under a risk of losing his/ her property in case the installments are not paid.
The later one is completely different from the former one. In the unsecured form, the borrower does not place anything as security. The interest rate charged in high in this form as the lender rather than the borrower is at risk. Thus, to cover up the loss, if any, the creditor charges high rate.
A person has to be eligible in order to avail the facility of Debt Consolidation. The debtor is required to be above 18 years of age and should be working in any of the organizations or firms. He/ she should be getting a decent salary every month. The borrower should be a permanent citizen of United Kingdom and should hold an active bank account on his/ her name.
The loan can now also be availed online. By following few simple and easy steps, a person can get Debt Consolidation without any hassles. Firstly, an online application form is to be filled by the candidate. Few details like name, age, phone number, email address etc are asked by the company. The form should be filled correctly and sent for verification. After which the lender approves of the loan and the money is transferred to the borrowers account.
