0 Get a Free Debt Consolidation Quote and Live Tension Free

Getting a free debt consolidation quote is the first step towards choosing a suitable lending company for a consolidation loan. With a little help you can repay all your dues.


Time and again people fall in to a debt trap due to emergencies or over indulgence of credit cards. They could have more than three loans, and paying them could be difficult. These people need debt consolidation help. There are many companies online providing such services. After discussing your liability related problems they give you free quotations. One must consult many lending companies before taking a decision. These quotations combine all your loans as one, and charge you an affordable interest. You can fill up an online form giving your financial details, and the company will contact you to give a free quote. In the quote, they lay out a financial plan for you. Always stick to the plan if you want a systematic reduction of your dues.


There is a lot of competition amongst them, so, make sure you go with a company offering the lowest interest rate. A consolidated loan can be secured or unsecured. A secured loan needs you to provide collateral against the loan. The loan amount can be sanctioned from £5000 to £75000. A free debt consolidation quote can bail you out of your debit burden; typically they stretch the loan in such a manner that you pay lesser amount every month. However, in doing so, you end up paying more in the end. In any case they help you come out of you’re over dues slowly. It is wise to go with a company which is affiliated with the government, as this would make sure that you are not been cheated. One such good company is The United Way and its affiliates. Once you have decided on a company, then it is better if you consult the Better Business Bureau to check for any complaints filed against them for malpractice. Check if they are under any national associations or organizations that monitor or regulate their services.

You will find many companies in the market offering their services. However, the main motive of most of these companies is to make profit from your loan. If you opt for such companies then you will find no end to your debit related problems. However, some companies work on a no profit basis. The main aim of a non-profit company is to guide you with the best options for consolidation so that you can get rid of all your dues in a smooth and easy manner.

0 Types of loans

Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan.

A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security — a lien on the title to the house — until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter — often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

A type of loan especially used in limited partnership agreements is the recourse note.

A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[citation needed]

Unsecured

Unsecured loans are monetary loans that are not secured against the borrowers assets. These may be available from financial institutions under many different guises or marketing packages:
credit card debt
personal loans
bank overdrafts
credit facilities or lines of credit
corporate bonds

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.


Source By :-http://en.wikipedia.org/wiki/Loan#Types_of_loans

0 Debt consolidation vs loans

The multiple options available to consolidate ones debts can be quite confusing, credit counseling programs, debt settlement, debt consolidation loans, bankruptcy are just a few options available today. Trying to find the best option to suit your current financial situation can be a difficult task.

Typically, debt consolidation programs are debt repayment programs. They can consolidate most types of unsecured debts from major credit cards to personal and student loans. You choose the accounts you want to enter into the program when joining. Once enrolled, the company will contact your creditors to negotiate more favorable repayment terms on your accounts and possibly reducing your interest rates and it may even elimination late fees. You will then send that company one lump sum payment monthly which they will disperse to the creditors you enrolled on your account when joining.

Most so called debt consolidation loans are just home equity loans in disguise. They use the equity built up in your current home loan and use it to repay all of your unsecured debts. These types of loan options usually come with heavy application fees and can greatly extend the amount of time it will take you to pay off those debts. These loans also convert all of your current unsecured debts into a secured debt which is now backed by your home. If you fall behind on your payments you could risk losing your property.