Whether you're looking to obtain a lower interest rate, or you need an effective debt elimination strategy, a loan consolidation can help. There are many ways to consolidate your bills and save money every month. But before you apply for a consolidation loan, you've got to know how these loans work.
A loan consolidation merges your debts into one new loan, and these loans generally offer reduced interest rates. It doesn't take long to acquire debt. However, it can take years to pay off credit cards and other loans. Loan consolidation is an effective debt elimination strategy. Lower interest rates equal lower monthly payments, and you're able to reduce the principle sooner. There are many ways to consolidate debts. Before choosing a consolidation method, it's vital to explore all options.
How Does a Loan Consolidation Work?
With a loan consolidation, you can combine all your outstanding debts into one new loan. A consolidation can simplify your finances. Rather than submit multiple payments to various lenders throughout the month, you can submit one payment to one lender. And because loan consolidations typically feature lower rates and fixed terms, you can realistically pay off your debt within three to seven years.
Types of Loan Consolidations
There are different types of loan consolidations. You can apply for a secured or unsecured loan consolidation with a bank or credit union. These loans serve a similar purpose. However, the loan qualifications differ. To obtain a secured debt consolidation loan, you'll need to provide the lender with collateral; and if you have a low credit score, they'll require a co-signer. With an unsecured debt consolidation loan, collateral isn't required. Nonetheless, these loans are for individuals with an excellent credit history and sufficient income.
Benefits of a Loan Consolidation
Loan consolidations simply life, and you're able to manage your debt better. With a consolidation, you'll deal with one lender and submit one monthly payment. And because loan consolidations generally feature lower interest rates, you'll save money over the life of the loan. Additionally, an interest rate reduction results in lower monthly payments, which increases your disposable income. Loan consolidations are also attractive because they speed the debt elimination process.
When credit cards have a high interest rate, the bulk of monthly payments go towards reducing the interest. In turn, the principle doesn't decrease. On the other hand, a reduced interest rate decreases interest payments, and a greater percentage of monthly payments are applied to the principle balance.
Things to Consider
If you don't qualify for a secured or unsecured personal debt consolidation loan, contact a debt consolidation agency. Debt consolidation agencies do not approve loans. Rather, they contact creditors on your behalf and negotiate better terms. Debt elimination is the primary goal, and a reduced interest rate along with a fixed repayment schedule can help you reach this financial goal. This consolidation option can stop harassing phone calls, and it's a practical solution for anyone who has considered bankruptcy.
Loan Consolidation Dangers and Warnings
Loan consolidation is not for everyone. And while useful, these loans are risky. Loan consolidations generally feature lower rates than credit cards and other installment loans, which is why they're attractive. However, low rates are subjective, and lenders take several factors into account such as credit history, collateral and income.
Loan consolidations create a new monthly expense, and failing to the repay the loan can have serious consequences. A single late or missed payments can result in an interest rate increase, which can significantly increase monthly payments. And since the majority of consolidations are secured loans, defaulting puts borrowers at risk of losing their collateral.


Are you low on cash and have bad credit and looking to find a loan shark?  Need  cash quickly?  Then you need a special kind of loan.  The normal way of seeking a loan is to visit your local bank or credit union and filling out a huge 100 page application.  Most of the time you would have your money within a reasonable timeframe.  No sweat.  However, times have certainly changed.  It has become tougher to qualify for loans because the truth is, hardly anyone has perfect credit anymore.  Our economy is in a state of recession and it may stay that way for a long time.

How To Find A Loan Shark  

But there is hope.  If you need to find a loan shark or temporary loan quickly (sometimes as soon as 30 minutes), then you have some options available to you .  You may have even thought of borrowing money from a loan shark. When  people think of loan sharks, they envision gangsters running around breaking debtors’ kneecaps with baseball bats if they failed to pay a debt.  While this may be true in the past, most modern day loan sharks do not operate in this fashion.

The only downside to borrowing money from a loan shark or trying to find a loan shark is the interest rate you may have to pay back.  The benefits of receiving the cash you need right away certainly outweigh the high interest rates though. Many people are interested in how to find a loan shark

Ready To Find A Loan Shark Online?  Follow these tips:

Find Lenders who offer Unsecured Loans
A personal loan does not require you to put up any collateral.  Whereas
with a mortgage or an autoloan, you would typically have to put down
a minimum of 10-20%.  Sometimes, personal loan lenders don’t even check your credit  So go get yourself a personal loan today
Find Lenders Who Qualify People With Bad Credit
As sure as the sun shines, you can bet your last nickel that you can find a “loan shark online” that will give you a loan and not base that loan on your bad credit file.  You may have to pay a higher interest rate, but you do need that money today right?
No Money Down
Most people are worried that they will have to put money down in order
to get the money they need.  This is not the case with loan sharks, payday loan providers, etc.  Your loan will be paid out to you at 100% cash value of the loan.  Very convenient!
Get The Money You Need Instantly
You’ll find that going through a major financial institution is very time
consuming and if you have bad credit, its also a waste of time.  If you
go to a loan shark type of lender, then you don’t have to worry
about all of the red tape or complexities.  You can often get the money you need instantly.
Most payday loan providers will only allow you to borrow funds up to $1,500. Well, most people need more money than that. So they fill out 2-3 loan applications and get $3,000 – $4,500 VERY quick


A loan against property (LAP) is exactly what the name implies -- a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 per cent to 60 per cent.
Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security.
What purposes can I take a loan against property for?
Loan against Property can be taken for following purposes:
  • Expanding your business
  • Getting your son/daughter married
  • Sending your son/daughter for higher studies abroad
  • Funding your dream vacation
  • Funding medical treatments
What kind of properties can I mortgage for a loan?
You can normally take a loan against your self-occupied or rented residential property. This could be a house or even a piece of land.
What are the eligibility criteria to get a loan against property?
This criteria will vary from one bank to another. However, from all the host of factors, the common factors that all banks look at are:
  • Your income, savings, debt obligations
  • Cost/value of the property mortgaged
  • Your repayment track record for other loans, credit cards, etc.
What are the normal interest rates and tenure for repayment offered for a loan against property?
Interest rates on loan against property range from 12 per cent to 15.75 per cent, and the loan tenure can be up to 15 years.
How is a loan against property different from a personal loan?
Loan Against Property
Personal Loan
The individual takes the loan by mortgaging the house propertyAn individual can take a personal loan for personal use without any security or guarantor
One of the cheapest retail loans after home loans; usually about 12%-16%Higher interest rates compared to LAP; usually issued at interest rates in the range of 16%-21%
Since the rate of interest is lower, frequently LAP Equated Monthly Installments (EMI) turn out cheaper Since rate of interest is high, Equated Monthly Installments (EMI) for personal loans are high
Maximum loan eligibility is determined primarily by the value of the property and incomeMaximum loan eligibility is determined primarily by an individual's income
Maximum loan tenure for LAP is up to 15 years (180 months)Maximum loan tenure for personal loan is up to 5 years (60 months)
Secured loanUnsecured loan
What documents are required for applying for a loan against property?
Most banks and financial institutions typically require the following documents. However, this list may vary from bank to bank.
Salaried Customers
Self Employed Professionals
Self Employed Businessman
Application form with photographApplication form with photographApplication form with photograph
Identity and Residence ProofIdentity and Residence ProofIdentity and Residence Proof
Latest Salary-slipsEducation Qualifications Certificate and Proof of business existenceEducation Qualifications Certificate and Proof of business existence
Form 16Last 3 years Income Tax returns (self and business)Last 3 years Profit /Loss and Balance Sheet Business profileLast 3 years Profit /Loss and Balance Sheet Last 3 years Income Tax returns (self and business)
Last 6 months bank statementsLast 6 months bank statementsLast 6 months bank statements (self and business)
Processing fee chequeProcessing fee chequeProcessing fee cheque
A loan against property is one of the best ways to raise money. The only disadvantage of such a loan is that if the borrower is not able to pay the loan fully, the bank or the financial institution can take possession of the mortgaged property. Base your decision on your repaying capabilities.