Monday, January 4, 2010
They say knowledge is wealth and the amount of wealth that can amass from meeting up with old friends is just invaluable. Four of us met one Sunday afternoon over a cup of tea. We spoke about old things, new things and finally the talk turned to financial issues. At the times of recession, finance, and managing, it is the only thing on everyone’s mind. That is when I came to know about consolidate debt. It means taking one loan to pay out a few others. Just like placing an asset as collateral against a loan. Well what is the advantage of just going from one loan into another, now that is the advantage of debt consolidation for it allows you to secure loans at low interest rates. When collateral is places against a loan, it allows the lender to be surer that the borrower is definitely going to return the money; else, the collateral is forcibly sold to return the money lent and hence the lender is able to offer much lower interest rates. Debt consolidation provides a feeling of security among the borrowers and an urge to take control of their finances. One gets to learn so much over a cup of tea! A day well spent.
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