Unsecured Loan
What is an Unsecured Loan?
Unlike a secured loan, where an asset, usually a property, is offered as security should you be unable to keep up the repayments, and unsecured loan does not require any such security.
Unsecured loans are usually for smaller amounts, £5,000 to £25,000, which is lent over a relatively short period of time of around 2-10 years. This makes unsecured loans ideal for funding modest purchases such as a new car, holiday or home improvements.
Unsecured loans can sometimes also be used as part of a debt consolidation or debt management program.
Unsecured Loans to pay off debts
Often people in debt owe money on credit cards, store cards, hire purchase agreements etc. This debt is not secured against a property or other asset. An unsecured loan as a means of consolidating debts and making finances much more manageable is therefore often a very effective method of dealing with a debt problem. Rather than making numerous payments to a variety of companies, just one monthly payment is made against the unsecured loan. In many cases, this way of dealing with debt has the added advantage of a lower rate of interest than many credit or store cards.
How to get an Unsecured Loan
An unsecured loan is often a good way of dealing with debt, but not always, and it is therefore important to get good advice before applying for a loan.
At DCO, our trained advisors will be able to ascertain whether or not an unsecured loan is the best solution for you. We want to ensure that you meet your financial objectives and will therefore assess those along with your circumstances before recommending an unsecured loan to you.
Whether you want an unsecured loan to deal with current debts or you are having difficulty getting an unsecured loan due to previous debt problems, we can help to find the right loan for you. We will also help you fill in the application forms and will guide you through the whole process.
No unsecured loan should be entered into lightly. It is imperative that each individual receives specialist advice to ensure that an unsecured loan is right for them.
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