Getting a Better Consolidation Loan Secured

If you're looking for the best way to reduce the number of payments you have to make each month, you might want to consider a consolidation loan secured.

By getting a consolidation loan secured, you can combine other loans, bills, or debts into a single monthly payment while getting a low interest rate by securing the loan with some form of collateral such as an automobile or real estate holding.

When considering combining loans or other debts with a consolidation loan secured, there are several items that should be taken into consideration in order to get the best loan rates? things such as the type of consolidation, the type of collateral, and the amount of the loan in relation to the collateral value will all be weighed in with your credit history to determine the interest rate that you'll receive.

Type of consolidation

The type of consolidation refers to what sort of bills or debts you are consolidating with your consolidation loan secured.

Banks, finance companies, and other lenders will sometimes offer different interest rates for a consolidation loan secured if it is being used to consolidate outstanding debts, as opposed to consolidating other loans held within the same bank.

Check with various lenders to determine which one offers the best rates for the type of consolidation you're wanting to do.

Type of collateral

Just as the type of consolidation you're wanting to do can matter when applying for a consolidation loan secured, the type of collateral that you're offering can be important in determining interest as well.

Common types of collateral such as cars, trucks, boats, and real estate can result in lower interest rates than more obscure items such as jewelry or collectables.

The reason for the difference in rates for your consolidation loan secured depending upon the collateral used is that if the lender has to repossess and sell the collateral, then they have to find a market to sell it.

Common items are more easily sold than the more obscure items (since they have a larger market and don't require appraisal to determine their value), so they require less of an investment of time and money to sell.

Loan amount versus collateral value

The amount of the consolidation loan secured that you apply for should be lower than the value of your collateral? much lower, if you can manage it.

A lower loan request in relation to the value of collateral insures that the lender will get their money back one way or another, and also insures that if they have to repossess then they'll be able to make enough from the collateral to cover the cost of processing and selling it as well as recovering the loan amount.

If the value of the collateral is too close to the requested amount, the loan might actually be declined if the borrower doesn't have.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Finding a Low Interest Debt Consolidation Loan

If you are in the market for a low interest... Read More

Credit Card Purgatory - A 7 Step Comprehensive Plan to Get and Stay out of Credit Card Hell

Does this Sound like You? There are 100 shopping Days... Read More

No-Cost Student Loan Consolidation

No-Cost Student Loan ConsolidationA no-cost student loan consolidation ? doesn't... Read More

Thinking Beyond Debt Consolidation Loans

Planning to devise a permanent solution to the problems of... Read More

Debt Consolidation - Is It Really The Best Option For You?

It is a very common question that people pose to... Read More

The Burden of Debt

Over recent years personal debt in the UK has exploded.... Read More

Debt Consolidation Service In Birmingham

Jane was a fun loving girl from Birmingham, you could... Read More

Get Out of Debt

It is said that a pet tiger cub can become... Read More

Open the Cash Vault Inside Your Home

Believe it or not, many people do not understand equity... Read More

Debt Consolidation: How it Works

As long as consumerism flourishes most of us will be... Read More

Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit

An online debt consolidation loan allows even people with a... Read More

Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills

For millions of homeowners, refinancing is the perfect way to... Read More

Debt Consolidation Benefits

If you've ever been in a situation where you needed... Read More

Whats the Difference Between Debt Settlement and Debt Consolidation?

The Debt Settlement process involves negotiating with your creditors to... Read More

Credit Counseling ? Congress Offers No Details in New Law

The recently passed Bankruptcy Abuse and Consumer Protection Act was... Read More

Debt Consolidation: Its all in the Planning

If you're like thousands of other people who find themselves... Read More

What is the Difference Between Unsecured and Secured Debt?

A secured debt is a debt in which the creditor... Read More

Debt Consolidation for Homeowners: Saving Grace for Inept Borrowers

You cannot understand the importance of being a homeowner until... Read More

Private Student Loans ? Dispelling The Myths

Private Student Loans ? dispelling the mythsIf savings, grants, scholarships,... Read More

Shake off the Chains: Credit Card Debt Elimination is Easier Than You Think!

Feeling like you're on the brink of financial disaster? You're... Read More

Best Debt Reduction Service

There was a time when incurring debts was looked down... Read More

Debt a Glossary of Terms

Bankruptcy - Having been legally declared financially insolvent. There are... Read More

Consolidate All Your Debt Into One Monthly Payment

Are you feeling overburdened with debt? Are you paying out... Read More

Planning To Become Debt Free With A Consolidation Loan

If you have multiple debts, and are struggling to meet... Read More

10 Pointers on College Loan Consolidation

Should I consolidate my college loans or not?1. Still in... Read More

Alternatives to Filing Bankruptcy

Deciding to file for bankruptcy is a decision that should... Read More

Stafford Loan Consolidation

Stafford Loan ConsolidationA Stafford Loan, which can help to finance... Read More

Shocking Facts - What Debt Settlement Companies Dont Tell You

If you're thinking about using a debt consolidation or debt... Read More

Debt Consolidation: Why And How This Strategy Often Backfires!

Debt consolidation solutions, has found that as good as it... Read More

Cheap Debt Consolidation Loans - Inexpensive Way of Winning Financial Freedom

The rising cost of living can force you sometimes to... Read More

Pay Off Debt Now: 5 Steps To Getting Your Finances in Order

In our world of dizzying change, nothing is more true... Read More

Finding the Consolidation Loans that You Need

Consolidation loans can be very useful in a number of... Read More

Getting a Debt Consolidation Loan with Bad Credit

If you've ever tried to get a debt consolidation loan... Read More