“I tried a few high street providers but couldn't get a loan at an acceptable rate, so did a search online and found Zopa.To get a loan from you Zopa could not have been simpler.If you fall behind, the mortgage holder can foreclose on your house to satisfy the loan.Unsecured loans are based only on your promise to pay and are not secured by any property that can be foreclosed or repossessed to pay the loan. Unsecured loans usually have a higher interest rate because they carry more risk for the lender.However, when your debt gets out of hand and you find yourself juggling multiple cards and loans, it can be exhausting. Debt consolidation could help you to combine your outstanding debts into one convenient loan potentially at a lower rate than you currently pay.If this sounds familiar, there are actions you can take to rein in your debt and pay it off sooner. Simply put, that’s one loan, one regular repayment, one interest rate and one set of loan fees.One of the major benefits of debt consolidation is that it is quite flexible.
Debt consolidation companies communicate with your debtors to negotiate lower rates on your behalf.While credit companies are under no obligation to negotiate your payments, the best debt consolidation companies may be able to consolidate your debt to a single, monthly payment or negotiate to lower the total amount of debt that you owe.For more information on the best debt consolidation loans and credit management options, have a look at our articles on debt consolidation.When you take out a secured loan, such as a mortgage or a car loan, you pledge certain property, such as your home or your car, to secure the repayment of the loan.For example, when you obtain a mortgage loan, your house is security for repayment.If you are struggling with debt repayment, you need to adopt an effective solution as soon as possible; Debt consolidation is one of the best strategies in this situation.It involves the pooling of all outstanding balances on loans and credit cards into one account.Step 1: Gather information about all your debts To take control of your debt it is essential to know how much debt you have.Review your statements and work out the following: Step 2: Work out how much you can put towards paying off your debt each month Next, it’s good to know where your money is going and how much you have coming in.The theory is that one payment will be easier to manage.The goal is to lower the interest rate and the monthly payment while paying off your debt more quickly.