Debt consolidation services bring forth many great benefits to those that may wonder how to escape from piles of debt. The process of debt consolidation involves setting up a single monthly payment figure while simultaneously working out payment arrangements with the creditors. In some cases, a lump sum can be negotiated while in other situations a series of payments can be worked out.
Either way, a consolidation service can certainly devise a much better payment plan for those that have to deal with excess debt. And, at the core of all consolidation services, is the aforementioned ability to merge various debts into one payment plan. Now, most people assume this refers to credit card debt, lines of credit, and other drp unsecured debt. But, is it possible to combine secured debt into a payment plan?
The answer may vary from one consolidation service to the other but, in general, it is possible to incorporate secured debt into such a plan. For those not familiar with what secured debt is, it refers to a loan where collateral is put up. A car loan or a home equity line of credit would be considered forms of secured debt. While such loans can be put into a consolidation service, the attempt to do so may not be all that easy.
Keep in mind when the loan is not paid off the lender can repossess or foreclose on the items that have been put up for collateral. Because of this it is doubtful they would be willing to lower interest rates or forgive a portion of the debt. However, they may be inclined to lower month payments or restructure the loan. This can then allow it to be placed into a consolidation plan much more easily.
So, it is possible to include secured debt into a consolidation agreement. The process just may be a little harder.