Secured Debt Consolidation Loans

secured-debt-consolidation Monthly bills for auto loans, credit cards, personal loans and so on may sound very familiar to an average person. The burden of all the paper work can be ended by simply getting a debt consolidation loan. This way instead of dealing each month with various creditors, you’ll have to deal with only one bill. In case your credit history is not exactly clean, you can still obtain the debt consolidation loan by securing it with collateral. The steps to follow are described bellow:

Decide upon the collateral

When you chose the collateral, think of an item that you are ready to risk in case the lender has to repossess it if you fail to pay the monthly dues. The house is an option, since there is the possibility of getting a home equity credit line or loan or even a second mortgage. If the house is not on your list of preferences when it comes to risk taking, then you can use the car or boat. There are also lenders who accept bonds or stocks or some expensive assets such as electronics or jewelry.

Find a lender

After deciding on the collateral you want to use, the next step is finding the lender who accepts the collateral of your choice. The most common loans are the home equity loans or for personal loans the collateral can be a boat or vehicle. If you decided on guarantying with jewelry or other expensive assets, you need to look deeper on the market in order to find a lender to accept such security.

Compare loan terms and rates

Comparing the terms and rates of the lender you chose against others on the market is a very important step. There are lenders who do try to take advantage of a borrower need for money and thus charge unjustified high interest rates or apply extra fees. Make a comparison between two loans at least, so you have a clear picture of the right values.

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