|
 |
2008-03-04 03:25:43
Settling Your Debts with a Secured Loan
|
 If you own a home or flat in the United Kingdom and you are up to your neck in debt, there is a solution.
As a homeowner, you have access to a large amount of potential borrowing power. Because you have equity built up in your home, you are able to pledge this equity as collateral against a loan. The advantages of this are: increased borrowing power, lower interest rates and a much more flexible repayment schedule.
If you own a substantial amount in credit card debt, you could save a tremendous amount of money by taking out a secured loan against your home and consolidating all of your outstanding debts into one payment. Here is how it works:
Let's say that you own a flat that is worth 200k pounds, and there is currently a 150k mortgage left on the property. With a standard 100% secured loan, you are eligible to borrow up to 50k pounds (200k appraised value of your home minus 150k outstanding mortgage). To make the calculations simple, let's say that want owe 50k in credit card debt, and want to borrow the full 50k in secured loans to pay off your debt.
Let's say that you are currently paying 19.9% interest per year on your credit card debt. With a secured loan, you will usually only pay around 9% APR. So not only will you benefit from paying much lower interest rates, but you will be able to consolidate all of your different unsecured debts into one easy secured loan payment.
The other benefit of a secured loan is that you have much longer to pay the loan off. A secured loan functions much like a mortgage, in that you can take up to 25 years to pay the loan off. If you are dealing with a substantial amount of debt, this extra time can make all of the difference in the world. Compare that to an unsecured loan, where you will usually get a maximum of 5 years to pay the loan off, if that.
Obtaining a secured loan is a smart financial decision. Applying for a loan is quick and easy. Simply click this link, or follow the link below this article. Apply today!
Apply for a Lending Place secured loan today!
Get payday loans to cover expenses until the next pay cheque comes available. Apply for payday loan in UK from a leading online lender.
|
|
Most Recent Articles
|
|
|
Get a Free Loan Offer Today - Click Here
There is NO FEE and
you are under NO OBLIGATION!
We'll Compare over 250 loan plans and search over 90% of the loan market.
Applicants with bad credit history, Mortgage Arrears, Missed payments or CCJs are welcome.
A lot of big banks competing for your business - Apply Today
|
|
|
|
Get Your Free Loan Offer Today - Click Here
There is NO FEE and you are under NO OBLIGATION!
We'll Compare over 250 loan plans and search over 90% of the loan market.
Applicants with bad credit history, Mortgage Arrears, Missed payments or CCJs are welcome.
A lot of big banks are competing for your business - Apply Today
|
|
|
|
