It can be a real struggle dealing with high amount of debt, particularly when you owe money to variety of different creditors. Student loans, mortgages and credit cards are just some of the creditors you may be finding it harder and harder to pay each month. If you are having a hard time keeping up with the monthly payments, take heart that there could a solution to these problems in the form of debt consolidation loans.
How Do Debt Consolidation Loans Work?
There are 2 basic types of debt consolidation loans – secured and unsecured. Secured debt consolidation loans require you to put the loan against some collateral. This means if you are unable to keep up with the repayments, the lender can still get their money from you from whatever collateral you have against it, whether it is the mortgage on your house or something else.
Unsecured debt consolidation loans however, do not require any collateral. While Conversely, an unsecured loan will not require any collateral from you. Although this can normally mean that the interest rates will be higher than the interest rates for secured debt consolidation loans; with a company like Lending Works, this is not the case.
More about Lending Works
Lending Works differs from a lot of financial organisations such as other loan companies and banks, in that they operate a peer to peer lending platform that brings together cautious and trustworthy lenders with borrowers who have reasonable credit. This completely cuts out the middleman that you often have to deal with and the company feels that it puts people back in control of their finances, keeping the banks out of the picture.
As they do not have to deal with banks therefore, they are able to keep the interest rates low on even their debt consolidation loans.
What Are The Benefits Of Taking Out Debt Consolidation Loans?
If you find it a bit of a nightmare to keep up to date with all the debts you need to pay each and every month, a debt consolidation loan could be just the thing to get your finances in check again. By applying to Lending Works for this type of loan you are essentially taking all your individual debts and squashing them down into one manageable chuck to pay off every month. Because of the longer payment terms and lower interest rate, the actual total repayment amount on your debts combined will be lower than it would be to pay them off separately.
The fact is that paying one bill a month is easier and more convenient than paying 3, 4 or even more. In addition to this convenience, Lending Works have worked hard to ensure that the process of applying and receiving debt consolidation loans is easier and quicker. You can also rest assured that the payment terms will be more flexible than they would be with a different company or bank and you will not be charged extra fees for paying the debt off early.