It’s no secret that the results of the pandemic and the more recent cost of living crisis have left many of us seeking alternative ways to afford the essentials, and for a lot of us that has meant extending overdraft facilities, obtaining credit cards and securing store credit options. But these multiple debts can mount in interest and become difficult to juggle, so what then?
There are many options when it comes to rectifying debts, all best discussed with a qualified adviser, but we’ve focused on secured loans as a means to consolidate your debts here. How could a secured loan work for you?

What is a secured loan?

A secured loan is used to pay off the existing debts and leave you with just the secured loan to repay, meaning all of your individual debt repayments will simplify into one single debt that can make it easier to keep track of debts and its easier to make repayments when managing cashflow.

What are the benefits of this form of debt consolidation?

  • Debt consolidation may also allow you to take advantage of lower interest rates, by switching higher interest loans into one lower rate loan.
  • If you find organising and remembering to make multiple payments confusing, this can help streamline the process, as you’ll only have one payment to manage.
  • Having an easily-manageable payment can help you safeguard your credit score, as you may minimise your chances of missing a repayment.
  • Having a single payment can help you budget, as you’ll know exactly how much you’re paying back every month.
  • A home owner loan (also known as a secured loan) is borrowed against your home, so you may still be able to borrow if your credit rating isn’t perfect.
  • Can help you improve credit scores by maintaining regular payments.
  • Home owner loans can last for ten years or longer. A long repayment period allows you to spread out the monthly payments.

As always, we suggest speaking to a qualified adviser to discuss whether a secured loan would be suitable for your needs, we can look towards other suitable options too and work together to help you and your finances.

Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

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