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2008-04-18 10:08:14
Feeling Financially Stressed? Consider a Secured Loan
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 There is only one thing worse than shouldering a large amount of debt, and that's shouldering a large amount of debt with high interest rates.
High interest rates can be an absolute killer if you are trying to dig yourself out from a mountain of debt. If you are stuck with large amounts of credit card or unsecured debt then you probably find yourself paying some pretty spectacular interest rates - possibly as high as 20%. This can make it extremely hard to keep up with the interest payments every month, let alone actually pay off the principal.
The good news is that if you are a homeowner living in the UK, you can use the equity in your home to pay off some of your outstanding debts that carry outrageous interest rates. You can do this with a secured loan.
Here is how it works. You take the current appraised value of your home and subtract from this amount your outstanding mortgage. This will leave you with your maximum borrowing power for a secured loan. So let's say that your home is worth 100k, and you currently have 50k in outstanding mortgages - this means that you will have a maximum of 50k in total borrowing power.
So let's say that you currently have 50,000 pounds in total credit card debt, and you are paying approximately 18% APR for your interest rate. If you own a home, then you can take out a secured loan for 50k to pay off your outstanding credit card debt.
Wait a second? Taking out a loan to pay out another loan? What is the sense in that?
The advantage of a secured loan is that because the loan is secured by the equity in your home, you are a much lower risk to the lender and will therefore be able to pay a much lower interest rate. A typical APR for unsecured debt is 15-20%, whereas a secured loan is closer to 8-9% APR. So instead of paying 20% interest, you would be paying 8-9%.
Also, there are other benefits of a secured loan, including:
1. Flexible repayment schedule (you can take up to 25 years to pay back a secured loan)
2. Much greater borrowing power (as we highlighted above)
Applying for a secured loan is quick and easy. Simply click on the link below and you will be taken to our application page. There is no obligation to take out a loan, should you be accepted. Apply today!
Apply for a Lending Place secured loan today!
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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
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