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You all might have heard of age old saying that there is strength in unity.It is interesting that the validity of this statement is applicable to repayment of loans also. We all find ourselves caught in debt trap at some point of time or other and getting out of this situation requires debt mangement. So, here that old age saying again comes into the picture,lets see how , you may well find that you've got debts littered all over you have credit cards bills, a car loan, an overdraft and a house payment . No wonder it's been hard work keeping track of your spending, all you have to do is to unite them all. A secured debt consolidation loan brings together or consolidates various debts and multiple payments . These are then repaid with one loan, one monthly installment, one loan lender and low interest rates. This means, that if you have several monthly payments or a number of different loans, you can make things easier by consolidating them and taking one single loan to pay off the total debt.

Secured debt consolidation loans require the borrower to offer their home or any securable asset as collateral. Real estate and vehicles are the most common collateral for secured debt consolidation loans . The borrower does not lose his right over the collateral. The secured debt consolidation loan provider holds the right till the borrower completely repays the loan. Once loan has been paid, his rights can be redeemed .The amount that one can borrow as secured debt consolidation loan depends primarily on the collateral placed.

As the risk borne by lender is taken by by colletral security the rate of interest being offered on secured debt consolidation loan is low and with a lower monthly payment and lower interest rate on the same amount of debt you end up with a lower monthly payment and have more cash on hand at the end of each month, while your debts are still being paid off. Here, another point worth considering is that by taking up a secured debt consolidation loan the borrower is not making his situation worse by taking up a new loan rather secured debt consolidation loan simply *transfers* the debt to a new lender and that too with lower rate of interest and favourable terms.

For some consumers a debt consolidation loan may be their best option, lets see how :

* Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier.

* Since the Debt Consolidation loan can be paid off over a longer time period, the individual monthly installments are also reduced.

* Reduced interest rates: as it is a secured debt

* Another point to consider is that, by consolidating, the borrower is faced with *one large payment to one creditor* rather than *many smaller payments to many creditors.* While this can be very beneficial.

* You can apply for a debt consolidation loan even with a bad credit history

* Enable you to payback unpaid debts.

* Secured debt consolidation loans are useful in avoiding bankruptcy as well as simply getting a person's life back on track.