In any busy modern state , one very important feature is lending and borrowing, but this giving and getting credit must always be handled in the correct fashion.

The words wise and sense are the words that really matter in all this and when lenders and borrowers choose to ignore these words that the economy can collapse.

Credit has a lot of forms such as loans including unsecured loans and secured loans, home improvement loans, car loans, remortgages and also mortgages

Using sense is the most important thing to bear in mind for those who lend and those who borrow, and when sense flies out the proverbial window, the after math can be serious for credit applicants and credit granters..

Whenever lending begins to be lax which is what happened prior to the recession which is what in fact caused the recession itself, with loans and all other credit given too readily with no the proper checks being made to make ascertain that the borrower , both for business purposes or private reasons could afford the repayments.

Due to this of this lax lending many people were left with debt in credit cards, hire purchase agreements etc. that they were actually totally unable to pay.

Once several years ago they took a mortgage of 350,000 to buy a home on a self certification of earnings and they did the same thing when they arranged the credit cards.

Now this over the top loans have come home to haunt them and the borrower can no longer manage to cope with high payments that he does not have sufficient income to pay for

An ideal method of getting rid of debt problems is by taking out debt consolidation loans which roll all debt in credit cards, etc. and leaves one payment monthly instead of a number of them.

Debt consolidation is easily sorted out by secured loans at from 9% and remortgages from only 1.84% and makes it apparent how much money can be saved by debt consolidation.

Want to find out more about debt consolidation loansy then visit Champion Finance’s site on how to choose the best remortgage for you.