The repayment of loans is one of the major problems and it worsens if you are unemployed and also have loan from more than one lender. You may loose your mental peace in order to manage your budget and keep up with the repayment dates of various lenders and thus hinder your work. Debt consolidation for unemployed gives you a solution to manage your debts efficiently. By opting for this you merge all your debts into a single one and have to repay only to a single lender. Thus the overhead is less along with the net interest rate.
Various facts and figures
You can consolidate your credit card debts, educational loans, unsecured loans, auto loans; home equity loans etc. by going for debt consolidation. You may go for secured and unsecured form available for unemployed. No security is kept in case of unsecured while in case of secured one, collateral is kept. The loan amount varies from £5000 to £75,000 with a repayment period of 3 to 20 years. The loan amount can be 125% of the equity in the collateral concerned.
Advantages
Debt consolidation costs you less interest rate than that of variable interest rates of different lenders thus saving a reasonable amount. You can plan your budget well if you have only one debt to pay as the monthly installment is fixed. You also have less overhead as it is easier to deal with one lender than many. With the saved amount and less mental stress you can go for some useful planning to utilize the money and improve your financial condition and credit history.
These loans are available in plenty through physical or online lenders. Online is the best medium as you save time, money and physical exertion.
Summary
Debt consolidation is becoming a major weapon to handle various debts efficiently. With a single debt replacing all previous debts the repayment becomes cheaper and easier. You may get good amount of loan at cheap interest rate if you go for secured debt consolidation. Come out of the depression of various loans and their increasing interest rate and go for debt consolidation for unemployed.
Tuesday, November 27, 2007
Despite Debt Concerns 'Consumers Are Taking Steps To Manage Borrowing'
Research from the company also reveals that one in four (25 per cent) Britons remain "concerned" about their level of debt between August and October, an increase of one percentage point from the preceding quarterly period. Meanwhile, an estimated 2.7 million consumers believe that they have gone at least ten per cent further into the red over the course of the last three months.
Conversely, the proportion of Britons who claim not to be worried about how much money they owe via home loans, credit cards and other means of borrowing has stayed relatively consistent. The number who state that they are currently "very unconcerned" remains at 17 per cent, the same level as recorded in the previous MoneyExpert study. Those judging themselves to be "unconcerned", however, have increased by a single percentage point to 24 per cent. As a result, a total of about 12.7 million people are untroubled about their capacity to handle their finances.
Sean Gardner, chief executive of MoneyExpert, said: "Over three million people are very concerned about keeping on top of their debts - a figure that has risen significantly in only three months. And with the festive season just around the corner, we can only predict that the number of people worried about their ability to deal with their debts is likely to increase. Christmas is a massively expensive time of year so you can't help but worry that many more are likely to become increasingly concerned about how they'll cope."
However, Mr Gardner pointed out that "many people have found ways to reduce their borrowing", with one possible way of doing this being the application for a debt consolidation loan. The chief executive added that may also wish to consider transferring their borrowing to more competitively-priced products. However, those who believe that they are developing unmanageable financial problems should make sure that they take steps to amend such difficulties immediately.
Consumers were urged not to bury their heads in the sand as the creation of a repayment plan towards creditors is the most important thing they can do to get their spending back on track. "It's not too late to sort out your problems before Christmas arrives," he claimed. Consequently, many Britons could find that applying for a low-cost loan as a means of debt consolidation could help them manage their finances as the festive period approaches. Such a loan may see borrowers clear off debts owed to a number of creditors quickly and leave them with a single low-rate monthly repayment.
Applying for a debt consolidation loan could see many consumers who previous refused to acknowledge the extent of their money problems freeing up funds to be used more constructively. And the numbers of people who could benefit are significant - a recent survey conducted by personal finance commentator Callcredit revealed that the majority of people do not accept responsibility for their financial situation.
Conversely, the proportion of Britons who claim not to be worried about how much money they owe via home loans, credit cards and other means of borrowing has stayed relatively consistent. The number who state that they are currently "very unconcerned" remains at 17 per cent, the same level as recorded in the previous MoneyExpert study. Those judging themselves to be "unconcerned", however, have increased by a single percentage point to 24 per cent. As a result, a total of about 12.7 million people are untroubled about their capacity to handle their finances.
Sean Gardner, chief executive of MoneyExpert, said: "Over three million people are very concerned about keeping on top of their debts - a figure that has risen significantly in only three months. And with the festive season just around the corner, we can only predict that the number of people worried about their ability to deal with their debts is likely to increase. Christmas is a massively expensive time of year so you can't help but worry that many more are likely to become increasingly concerned about how they'll cope."
However, Mr Gardner pointed out that "many people have found ways to reduce their borrowing", with one possible way of doing this being the application for a debt consolidation loan. The chief executive added that may also wish to consider transferring their borrowing to more competitively-priced products. However, those who believe that they are developing unmanageable financial problems should make sure that they take steps to amend such difficulties immediately.
Consumers were urged not to bury their heads in the sand as the creation of a repayment plan towards creditors is the most important thing they can do to get their spending back on track. "It's not too late to sort out your problems before Christmas arrives," he claimed. Consequently, many Britons could find that applying for a low-cost loan as a means of debt consolidation could help them manage their finances as the festive period approaches. Such a loan may see borrowers clear off debts owed to a number of creditors quickly and leave them with a single low-rate monthly repayment.
Applying for a debt consolidation loan could see many consumers who previous refused to acknowledge the extent of their money problems freeing up funds to be used more constructively. And the numbers of people who could benefit are significant - a recent survey conducted by personal finance commentator Callcredit revealed that the majority of people do not accept responsibility for their financial situation.
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