Financing is the first concern of all kind of home buying. When you apply for a loan for an under construction property, it is called a ‘home construction loan‘. Whereas when a loan for buying a fully constructed house is availed, it is called a ‘home loan‘. Blog:https://financebuddha.com/blog/home-loan-vs-home-construction-loan

1. One Loan for All Loans
Debt Consolidation Loan

2. Debt Consolidation – What Does It Mean?
A loan is not something a new concept in money market.
Many a people are dealing with several secured and
unsecured debts in their lives every now and then. Having
said that I would like to mention here that most of us get
confused while making decisions related to money.

3. Normally, in general debt consolidation is used to finance
multiple non-asset debts such as credit card bills, students’
loans, medical expenses, payday and such. If you are availing
debt consolidation then you are simply signing a single
cheque every month instead of 4 -5 different cheques to the
creditors.

4. How Does It Work?
In debt consolidation there is a single creditor. You need to
pay your single creditor every month and the creditor will
take care of your other loans for the rest of the month.

5. Types of Debt Consolidation Loan
Debt Consolidation through Secured Loans
 The advantage of opting for a secured consolidation is that
you will have to pay a lesser rate of interest on your loan.
 This makes it is more affordable and if your loan is against
real estate you might also get tax deductions too.

6. Debt Consolidation through Unsecured Loans
 This is quite a common way to consolidate once debt.
 Most of the banks offer unsecured debt consolidation at a
lesser rate.
 The benefit of unsecured debt consolidation is that your
collateral is not at any risk.

7. Personal Loan as a Debt Consolidation Loan
Features with a personal loan as a debt consolidation loan
 No collateral required.
 No need to give anything as security.
 Repayment can be done through EMI.
 Offers flexible tenure.

8. Advantages of Debt Consolidation Loans
 You only have one monthly payment to worry about.
 You get a chance to consolidate at a lower interest rate
compared to your previous debts.
 This loan is offered for a time period of typically 2 -5
years, this means you have this time period to clear your
debts.

9.  Debt consolidation loans save your money.
 There are generally no fees or charges involved for this
loan if you borrow money from a bank or credit union.
 Last but not the least it reduces the burden of debt and
provide you a piece of mind.

10. Bad Credit Debt Consolidation
Bad credits can arrive in secured or unsecured loans. Debt
consolidation is apt for unsecured loans but bad credit in
unsecured is way too worst for any debtor. So if we put aside
the complications and think as a normal human being the
debt consolidation will make your bad credit even worse one.

11. Debt Consolidation – Myth and Truth
Debt Consolidation is attractive. If we follow the myth
then one must go for consolidation as it allows you to pay
less on monthly basis and yeah it offers less interest rate
as well. Wow! Is not it attractive? Yes it is.

12. Debt consolidation offers you to convert your multiple
loans into a single one. They also offer you low interest
rate and lower monthly payments. Now think about it,
your loan amounts are still the same then how can
consolidating debt can reduce the amount or interest rate.