Debt consolidations

The debt consolidation requires to leave a loan to sponge with many others. This is often done to fix a lower interest rate, fixes a rate at fixed interest or to help to ensure the service of only one loan.

The consolidation of debt can simply be a certain number of loans without guarantee in another loan without guarantee, but more often it implies a loan guaranteed against capital which is used as guarantee, most generally a house. In this case, a mortgage is fixed against the house. The collateralisation of the loan allows an interest rate lower than without it, because by collateralizing, the owner of capital agrees to allow the obligatory sale (preclusion) capital to pay behind the loan. The risk with the lender is thus reduced interest rate offered is lower.

Sometimes, the companies of consolidation of debt can discount the amount of the loan. When the debtor is in danger of the bankruptcy, the unifier of debt will buy the loan with a discount. A careful debtor can compare the prices before buying the unifiers who will pass along part of the saving. The consolidation can affect the capacity of the debtor to discharge from the debts in the bankruptcy, thus the decision to be consolidated must be weighed carefully.

The consolidation of debt is often recommended in the theory when somebody pays the debt by the credit card. The credit cards can carry an interest rate much larger than even a loan without guarantee of a bank. The debtors with the property such as a house or a car can obtain a lower rate by a guaranteed loan using their property as a guarantee. Then all the interest and all the margin paid towards the debt is lower making it possible the debt to be refunded earlier, incurring less interest.
forclosure is the legal proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the owner the right of redemption if the borrower repays the debt. When this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lienholders can and do use foreclosure, such as for overdue taxes, unpaid contractors' bills or overdue HOA dues or assessments.
free credit report is an American federal law (codified at 15 U.S.C. § 1681 et seq.) that regulates the collection, dissemination, and use of consumer credit information