Proper debt consolidation loans through secured loans is a good option

Posted by maryparker on January 13th, 2013

Have you fallen behind your credit card payments? Are you finding it hard to pay the monthly bills? Are you now thinking of taking a payday loan to pay off your monthly bills and minimum credit card payment due? Wait – there is a much better option available. Why not opt for debt consolidation? It is not difficult to get secured loans for this purpose. Deal with an experienced loan broker to get proper help.

We start off by opting for our first credit card. We use it for some time and suddenly there comes a call where the lady on the phone says that we are eligible for another credit card because we have been dealing excellently with our credit card payment. We say yes to the lady and the second credit card comes in the mail. Then a third credit card arrives and then a fourth and so on... Very soon we start making purchases using multiple credit cards. And of course, we made to make as many payments as the number of credit cards we have. Life soon becomes hell and all we think throughout the month is the next payment due date.

Is this easy to manage? It is not by a country mile. Keeping track of so many payments is not easy. Then comes a time when we default on one payment. Very soon we start taking out money from one credit card to pay another one. Then we opt for a personal loan and clear off the credit card dues. Suddenly we find that the credit card dues have gone back to where they were and there is this additional burden of the personal loan. The situation goes out of hand and no further loans are now approved. Payday loans seem to be the only option left. But have you considered how much interest you pay when you opt for a payday loan? It is insane. Don’t panic in this situation and don’t consider a payday loan. Look for secured loans and check out options in debt consolidation.

You may think that banks only understand money. It is true that banks survive by managing money but it is also true that banks don’t mind helping people that want to improve their financial condition. Secured loans are available against security. If you have a house in your name you can use it to take a cash loan. Even if there is a mortgage on the house a secured loan can be given to you basis the value of its free equity. You can then use this money to pay off your credit cards. Now you will just have one loan to pay and this is what debt consolidation is all about.

Why are secured loans better than personal loans when it comes to debt consolidation? A secured loan costs less and you also feel inclined to pay it off because of the collateral. Many people destroy their credit cards after taking a secured loan and this helps them immensely.

One of the best ways for debt consolidation is to opt for secured loans.