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Secured or Unsecured?
I keep seeing all these adverts on television about debt consolidation. It looks like it could solve my problems. I like the idea of having a smaller payment and lower interest but it kind of sounds too good to be true though so I'm a bit concerned.
I have debt on three credit cards, totalling £7,000. I'm also a home owner and am unsure about secured/unsecured loans. So I guess my question is do you think a debt consolidation loan would work for me and is it better to get a secured or unsecured?
I personally think that
I personally think that unsecured is good for people who aren't good with credit cards at all. I have found that when you actually have your own money on your card, it makes you a lot more responsible. When you have a card that has money being thrown at you, some people get a little careless.
Secured or Unsecured?
Hi Andy,
In terms of your debt, it sounds like debt consolidation could be a solution for you. There’s a lot of lenders across the UK so investigate different loans and lenders before you commit to anything.
Because you're a homeowner, if you take out a secured loan, its likely that your interest rates will be lower. The consequences of not keeping up with a secured loan are severe though, you will be risking losing your house. If you get an unsecured loan the rates are higher, as you have nothing to guarantee the loan.
If you want to chat more to someone about what other debt options are available you can give us a call at the Debt Advice Trust. We can help you asses the risk of taking out a secured or unsecured loan and talk to you about reducing your debt.
Debt Guru
Debt consolidation is most
Debt consolidation is most certainly a good course of action as you will save much money through that process. Here is some information on the subject that you may find interesting. Good luck!
Debt consolidation is right for some
I have a friend who just did this for herself and their family. They had high credit card debt, medical debts, and other payments. They got a low interest loan with money up front. She paid off her credit cards, paid the doctor bills, and the other bills that were overdue.