Debt should never be taken lightly especially in today’s times of economic uncertainty. It is true that most people depend on loans for any large purchases like a house, car, household appliances etc. In this situation, if there is a sudden layoff from your job or an unexpected salary cut, then your entire budget goes haywire. At the same time, if you have too many loans then it is difficult to keep track of all the repayment dates. Then again if you use credit cards to make large purchases then you will be paying a very high rate of interest because credit cards are essentially unsecured loans.

Debt consolidation

Debt consolidation is essentially the combining of all your different loans and paying them off with a single loan. However, while opting for debt consolidation loans you need to bear in mind that all your loans should be paid off with the single amount of loan. At the same time, the rate of interest on this loan should be significantly lower than the cumulative interest you are paying on all the different loans. Debt consolidation loan can be of two types – secured loan and unsecured loan. In a secured loan you need to provide some asset – usually your home – as collateral. In this case, the rate of interest on the loan will be considerably lower because the lender is taking the lesser risk. However, if you are taking an unsecured loan then the rate of interest will be higher.

Where you should look for loans

Whether it is debt consolidation loan or unemployed loans UK the best option is to opt for one of the reputable loan brokers in the country. Such loan brokers have associations with many specialist lenders who will provide loans to unemployed people and people with bad credit. You may already know that no mainstream high street lender will be ready to provide a loan to an unemployed person. However, the truth is that the unemployed person in question may be looking for a job and very soon likely to get one. This individual may need to tide over a short period of time during which there is no income. The specialist lenders of today understand this predicament of the unemployed person and hence are ready to provide loans to them.

The benefits of opting for loan brokers

If you opt for a loan broker in order to apply for a loan then the best part is that you can get loans even if you have bad credit or are unemployed. Generally, the mainstream banks and lenders refuse to give loans to such people. Then again the high street lenders and banks require a face to face meeting before they approve the loan. The process of loan application and approval often takes weeks and there is a lot of paperwork and running around involved. This does not solve your problem if you need money urgently. On the other hand with broker loans, your loan will be approved within half an hour and you will get the loan money within 10 minutes of that. At the same time, the entire process of application and approval is online and you do not have to go physically to their office. This, in turn, saves a lot of time and money.