As a nation struggling to manage our finances, it is estimated that approximately 6.5million of us here in the UK are turning to the idea of consolidating our debts.

Figures from MoneyExpert.com show that over the last 3 years some 14% of Brits have taken the opportunity to consolidate their debts as a way to bring their borrowing and spending habits under some kind of control. Their research also shows that 1.29million people have consolidates debts of as much as £20,000 or more. This figure is the result of an accumulation of overdrafts, credit/store cards and loans.

The trend is that it is the younger age group who are taking the decision to transfer their debts to the one lender, with 23% of all 25-34 year olds taking part in the study having already taken steps to consolidate their debts.

Furthermore, figures show a sharp increase over the last 6months in the demand for secured loans. Those among us choosing this option more often than not secure the loan against our own homes. Since October 2007, applications for homeowner loans has increased by 85%.

Chief Executive of MoneyExpert.com, Sean Gardner is encouraged by so many people being proactive in trying to manage their finances. He hopes these people can see for themselves that, in many cases, there can be significant savings to be made by moving all your debts to the one place. He says,“With average standard credit card rates at 17.01 per cent compared to average unsecured loan rates of 8.44 per cent it is clear that borrowers can cut their monthly interest bill by moving.”

Mr.Gardner does add one word of warning though, and that is to view consolidation as a means to tackle debt problems and an attempt to get them under control. He strongly advises against repeating consolidation on any regular basis.

As with all financial advice/matters, one must always read the fine print and be aware, as Head of Personal Finance at Fool.co.uk tells us, that around half of all consolidation loans carry a penalty for early settlement.

According to a recent report many Brits are juggling multiple credit cards and continuing to get themselves into debt despite the credit crunch and despite the financial woes that many households are facing due to higher energy, food, petrol, and mortgage costs.

Figures show that over three million Brits have five or more credit cards that they are spending on, and this could simply add to the already massive personal debt problem in the UK.

Although financial markets are in turmoil and credit conditions are tight due to the global credit crunch many Brits are continuing to spend way above their means.

A third of Brits are said to have applied for another credit card over the past year, and those that have been turned down due to difficult credit conditions will also have adversely affected their credit profiles.

There are already concerns over the amount of personal debt in the UK, with industry officials expecting an increase in the number of people that will become insolvent over the course of the year.

One industry official said that getting another credit card is fine if it is to reduce debt – for example getting a 0% balance transfer card to save money on interest on existing credit card balances – but he said that consumers that are simply accruing credit card debt could hit problems in the future.

He said: ‘It is entirely healthy if people are swapping debts from one card to another, taking advantage of 0% deals to ensure that they pay as little interest as possible. But anyone who is trying to juggle five or more credit cards and owes money on all of them is in real trouble.’

Debt consolidation primarily has three distinct advantages. By putting all the debts in its one basket the borrower is spared the harassment and indignity of tackling many creditors. It brings peace of mind and one can go about work schedule with energy and hope. Secondly, debt consolidation manages all the debts in such a way that the overall amount spent towards repayment is reduced. This in turn leads to money being saved that can be fruitfully used. Thirdly it allows the borrower an opportunity to recover his or her bad credit ratings by paying back this one debt consolidation loan timely and regularly.

There are two types of debt consolidation loans – secured and unsecured. For secured loans a security or collateral has to be pledged. Since the lender does not have to bear any risk the rate of interest are low and terms of payment flexible and long. But many borrowers either cannot or do not wish to pledge any asset like property, valuables or documents as security. In this case the rate of interest is high and the period of lending short but the borrower does not have the fear of losing his goods and valuables.

Debt consolidation loans are available online. There are many lenders in the field and consequently competition is stiff. Borrowers are being wooed. Browsing online one can find out the various offers, free quotes, flexible terms, fees and the like before taking a decision. Online operation is very quick and simple – especially with secured loans. One can get a loan approved in principle (anything from 3,000 pounds to 50,000 pounds for 5 to 25 years) within an hour of submitting application. The money will come in after 14 days subsequent to checking details provided by borrower.

The payments can be insured to cover unforeseen circumstances like loss of work and ill health. Loan can be repaid anytime.

Debt consolidation mortgage brings all the different loans under one single name. Although the debts are not paid off there are many advantages attached to the scheme. It allows for maximum monetary benefit. It is not however a credit cure but a financial relief. The scattered debts are brought together in such a way that the total repayment figure becomes less than what it was before. One of the bonus points is that the borrower does not suffer the indignity of facing many lenders but is accountable to a new single creditor.

There is no one single rule for debt consolidation mortgage. It differs according to the financial status and need of the borrower. For quite some time the interest has been low and this has been often publicized in various advertisements related to the scheme of debt consolidation mortgage.

Debt consolidation mortgage is granted by the pledging of a security or collateral that is usually the house or property. Any kind of loan – educational, auto, personal etc can be brought under the umbrella of debt consolidation mortgage. Thus the borrower must be very careful in repayment schedules otherwise the property is at stake.

Credit counseling and management is also available for applicants. It is on individual basis and the borrower will be greatly helped by professional advice.

Debt consolidation mortgage allows the borrower a chance to save the financial position, improve credit ratings and start life with a clean slate.

Multiple debts mean multiple debtors – a situation that can tell on the nerves and work productivity. But with online debt consolidation the many become one – something manageable and helpful. A stream of debtors knocking and calling can be tiresome to say the least. But with this offer the borrower is free to concentrate on his or her work that brings in money.

The plus point is that online debt consolidation is open to all – even those with bad credit. Needless to say that good credit holders can also apply. But those with a negative credit history now gets a chance by availing of online debt consolidation loans to improve the ratings by timely repayment.

Contact can be made online thus saving on time and money hunting for lenders. Today lenders are wooing borrowers and as such free quotes are available on the net. The borrower can make a choice after comparing and contrasting offers. The net makes it possible to make quick contacts. The lender backed by years of experience will give sound advice regarding the particular financial problem of the individual.

Thus debt consolidation means the method by which all pending debts merge into one loan or mortgage account. This is done by shifting to a new lender. Ultimately it will reduce the payments made per month. It is possible because the new bigger loan will now be spread over a longer period of time. The overall interest rate is reduced. Various loans, personal or medical bills, grocers dues, charge accounts are all lumped into one cheap loan. It enables the individual to better manage household budget.

Debt management counseling, bankruptcy advice etc are also available. The offered terms are easy and flexible. Those who have experience of CCJs, INAs and credit card blues will benefit from this online debt consolidation loans. Today there is hardly anyone who is not burdened with a loan – it is the lifestyle without which one cannot remain mobile.

The past few decades have seen the proliferation of a loan culture that has brought about ruin to many. An individual may be good at earning but managing the income is not easy – especially when a consumerist society is gaining ascendancy. The loan ridden modern world has made it very easy to take one loan after another that ultimately leads to a debt-jam from which it is difficult to escape. The debtor finds it impossible to balance income with expenditure that is burdened with huge interests. In such a predicament the best answer is to seek debt management solution. The remedy will not only manage to clear the jam but with some luck, discipline and calculation might even wipe the slate clean of all debts.

What is debt management solution? It consists the perusal of some logical principles, which will aid the debtor. The financial market provides this management programme and can be located under many headings like – debt consolidation, debt management services and the like. The main focus is on eradicating problems connected with debts to bring back to the borrower a financial stability that will help him or her to work constructively without fear and anxiety. Till now multiple debts had been nipping debtors from all sides but with this guidance of debt management solution things will begin to look up again.

First thing is logical and reasonable advice – advice that can be put into action. The experts will probe into all the pending debts and chalk out a plan of strategy. With available finances some debts will have to be cleared. Those remaining will be put into one package and paid off with the help of one single loan taken from a new lender. Instead of multiple creditors the debtor will have to now handle only one lender. Many creditors tend to make life miserable. In terms of money there will a considerable amount saved by paying only one lender.

The borrower too has to come forward and discipline use of credit cards to the minimum. These are major sources of increased interest. As far as possible dealings should be done in cash. Other non-priority expenses should be curtailed. The expenses must balance the income. This requires determination and discipline.

The debt management solution will allow the harassed debtor to start life anew based on these new principles.

Debts can catch the individual in the snarl of a debt jam – credit cards, auto loans, secured and unsecured loans etc. It is a bewildering array each carrying your name. Nobody can or should run away from debts. The only viable solution to this problem is to go for debt consolidation or integration – pick up the scattered bits and put it into one basket.

Debt consolidation mortgage not only ties together various debts into a bunch but also brings together the many benefits under one name – the name of debt consolidation mortgage. It definitely does not mean that all debts are paid off but it is brought under the control of one authority. Debt consolidation requires the provision of a security or collateral which is usually the house or the property.

Under the scheme of debt consolidation mortgage all kinds of loan can be given shelter – auto loans, secured and unsecured loans, personal loans etc. Before actually applying for it the borrower should understand it. It allows the maximum financial benefits for the borrower. There is one risk and a major one. Since it is secured any failure or slip in repayment might entail the loss of a valuable asset – may be the roof above your head. So repayment must be meticulous.

Debt consolidation mortgage has been chalked out to meet customized need of each individual – his or her money needs and status. For some time interest rates have been low. This point has been boldly advertised by debt consolidation mortgage. Undoubtedly the offer is tempting. But before jumping in it is well to note that debt consolidation mortgage involves not credit cure but credit relief. It does not make debts vanish. What it does is to reduce your lower monthly payment amount by bunching them together. The borrower is also spared the anxiety of handling individually many creditors.

The borrower should verify to see that the new interest rate is lower than the previous one. There are debt consolidation counseling facilities available. Debt consolidation credit management is very proactive in the field. Each person’s reasons for opting for it are different and that requires professional scrutiny.

Since two thirds of the adults in UK are having multiple debts under various names debt consolidation mortgage is the best opportunity to allow a borrower breathing time to be able to do constructive work.

It is sheer magic otherwise how can one debt cancel out another? But it is possible with personal debt consolidation loans. It reminds one of the adage that one needs a thorn to take out one. It is the practical application of tit for tat. By taking one loan – the personal debt consolidation loan, the borrower can escape being surrounded by nipping bites of numerous loans.

The loan culture has come to stay. The economy cannot otherwise thrive in this cyber age. Money must exchange hands. The more money flows the more does the economy look up. This being the scenario there is hardly anyone today who is not saddled with a loan. Sometimes the situation becomes uncomfortable with one having to deal with more than one loan. This is where secured personal debt consolidation loans step in.

The first prerequisite for applying is of course a security – as the very name suggests. A collateral is a must in this type of secured personal debt consolidation loan. The applicant can offer many assets as security – house, jewellery, valuable documents etc. The loan amount will depend on the value of the assets. The loan amount may vary from 5,000 pounds to 75,000 pounds. The time allowed for repayment ranges from 5 to 25 years.

This is a debt consolidation loan – this loan puts all the other sundry loans into one basket. It reduces the monthly burden of the responsibility of honouring many commitments. For instance three different loans will now be bracketed as one loan. This will not only lower monthly expenses but also the headache of managing so many creditors.

There are many benefits from secured personal debt consolidation loans. The rate of interest is lowered. This reduces the pressure on the income and the borrower gets a chance to pay off the dues without taxing his or her budget. Often tackling numerous creditors can tell on the mental and physical health. It is a job fraught with tension. But this one loan will give relief from untimely calls from lenders and allow the borrower more time on constructive work.

The only snag is the security factor. But one cannot eat the cake and yet have it. There must be some give and take and considering the advantages the secured personal debt consolidation debt spells out hope for a debt-free future, just try it out…

Benefits of a Debt Consolidation Loan:

You will be able to pay off all of your debts and replace them with one (larger) debt and one interest rate that is assigned to it. Usually, especially with credit card debt, it is the interest rate attached to these debt amounts that makes them so hard to repay. With a debt consolidation loan you will be able to pay one amount each month and one interest amount instead of several. This could reduce that amount of your monthly bills by as much as fifty percent!

Drawbacks of a Debt Consolidation Loan:

Once you have reduced the amount of your monthly payments and gotten on the road to improving your credit record, you will have a little bit more money at your disposal than you did before and you might be tempted to start over spending again. It can be heady knowing that your cards have been paid off and that (depending on your debt consolidation method) you once again have credit to use. The fight to resist this spending urge will be harder than the one you fought when you opened the credit account.

Should You Get a Debt Consolidation Loan?

Because it is going to be harder to get a loan (any loan) than it has in many years, you will probably be tempted to fly to the bank as soon as you finish this article. If your debt problem is a temporary one—you’ve only recently had troubles making your monthly payments—then a debt consolidation loan is a good idea and you should start getting your paperwork together. You could even go for a secured debt consolidation loan which will give you even more incentive to pay off your debt consolidation loan on time.

However, if you have had to consolidate your debts before and you know that spending is a problem for you, you might want to think twice. Paying off your credit cards a little bit at a time is probably a better idea. It will give you a longer period of time to work on your over spending problems.

There are a few websites on the internet with information about debt consolidation loans that you should look at before filling out the sixty second response form offered by Spotloans. But rest assured that once you fill out the Spotloans form you will be well on your way to getting your debt under control!

Here are a few highlights if you don’t have the time to read everything (though you really should make the time to read the article, it is very interesting):

The number of bankruptcies in the UK is higher than it has ever been. Usually bankruptcy is declared by life changing events like business failures, divorce or surprise bills but this year the majority of bankruptcies have been declared by people who have taken on more credit than they should have, meaning that too much money has been spent on things that the borrower probably did not need. Eighty Three percent of people who declared bankruptcy did it because they spent more money than they earned.

“Loose credit lending” is slowly becoming less and less loose. This means that the people who supply others with credit and loans will probably start to leave the money lending/credit offering market which means that, should you want to take out a line of credit, you will most likely need to do so through a bank instead of an independent company.

The article gives a number of reasons for these situations and talks about the financial history of the UK to give our current situation some perspective. The truth is, finances are getting tighter in the UK and you need to make sure your personal finances are under control.

If you have a lot of outstanding debts, you might consider taking out a secured loan, using your home as collateral, to pay off the smaller debts that are under your name. This will save you money and, probably time, later on. This way you can pay off your debts now instead of hoping that a debt consolidation loan will be readily available in a few months.

Obviously, the credit lending companies are not all going to close down over night, but if there was ever a time to get your finances under control, this would be it. Don’t wait to pay off your debts. Do it now, so you will not have to worry about whether or not you can do it later!

The article on Money Week is informative and insightful and is definitely worth the read.