The ultimate way to get ride of your high interest loans, credit cards, store cards and other types of finance is to consolidate into a single payment. Secured Loans are the perfect way to do this as long as you have enough equity within your property. This is called Loan to Value (LTV) and is a simple calculation that takes your property value, mortgage outstanding and the loan amount. Try you LTV calculation to work out how much you can borrow. If your total repayment is less than your current repayment then you might be better off repaying all your current creditors. This is especially true for high rate credit cards.
Credit Card Consolidation is one of the most common forms of consolidation and makes up 60% of all secured loan consolidation reasons.
The points to note are if there are no serous redemption details associated with your loans then you can repayment and simple swap one APR rate for another rate. Note that a secured loan may appear to be a higher rate than you are currently paying however this will be extended over a longer term and will not punish you for over payments or early repayments. Another point to note is if you have missed any payments on your current loans or mortgage you will be automatically placed onto a high risk zone. The high risk zone means that you will have to pay a higher APR as the lender is take the risk that you might never repay the loan. Remember, always tell your creditors if you are having problems making your repayment and never, every miss a mortgage repayment. Doing so could change your chances of getting a 10% APR loan and repaying it with an 18% APR.
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Click here to try our LTV Calculator and see if you can make a saving on your monthly repayments
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