When debt piles up on a person, their life becomes miserable. They are constantly under stress as to how they should repay all those piling debts. They are not even in a position to apply for another loan to repay the debts as no lender will grant such people any money. However, they need not worry, as they can apply for Debt Consolidation Loans to find a solution to their problem.Debt Consolidation Loans are advances which help people get rid of their pending debts. The borrower can avail this finance in either a secured form or an unsecured form. He can make use of the flexible repayment scheme to pay the entire amount back on time.The candidate can avail a sum that varies from £250 to £250,000 and he must pay the entire amount back in a time period of 6 months to 25 years.In the secured form, the borrower will have to place some sort of property or asset as collateral against this credit to avail it. This is so because the lender needs some sort of assurance as to whether the borrower will pay the amount back to the lender or not. Due to this, the lender will charge the borrower with a slightly lower rate of interest. Though, the borrower faces a huge risk of losing possession of his property if he is unable to pay the amount back on time.The borrower is not required to place any sort of property or security as collateral if he applies for the unsecured version of Debt consolidation UK. Due to this, the lender has no assurance that the borrower will pay the borrowed money back to the lender and to overcome this risk, the borrower charges the lender with a comparatively higher interest rate. However, the borrower does not face any risk of losing possession of his property if he is unable to pay the amount back on time.People who have acquired the tag of being a bad creditor can also apply for Debt consolidation loans without having to worry about their financial status.The applicant should hold a valid and permanent citizenship of UK to be eligible for Debt consolidation services. The applicant should have completed the age of 18 years or above. He should be employed in any company and should also be earning a regular monthly salary. Lastly, the applicant should have an active bank account.
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