In any bustling modern society , one extremely important factor is lending and borrowing but this granting and applying for credit must always be handled in the right way..

Wisdom is the essential keyword, and is the word that must now be kept in mind by lenders and borrowers alike.

Lending and borrowing comes in all shapes and forms and there are all types including loans used to buy a car, loans for home improvements and also mortgages, remortgages, etc.

The act of borrowing and lending can really help an economy but when common sense is thrown to the wind the consequences can be very serious for lenders as well as borrowers.

This lack of common sense and sense of caution by banks and building societies prior to the credit crisis caused much of the economic chaos that resulted. . Mortgages, remortgages and loans of all sorts, and credit cards were then applied for without bothering to consider the important fact if the borrower had the ability to repay the debt.

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

At the time of applying for, and being accepted for all the different credit cards without any income proof twhich they knew they really could not afford,they were far too greedy to resist all the too easily offered credit cards and it was the same thing with the personal loans, the hire purchase, etc.

It was not long before they regretted the over stating of earnings when they applied for all this credit when they are now finding it impossible to meet the payments to all the debts every month.

Those no longer able to manage debt, can find a way to get rid debt and this is by debt consolidation which lumps all outstanding debts into the one and leaves one payment in the place of the numerous credit card debts, etc.

The ideal means of arranging debt consolidation is by remortgages or secured loans which both have low rates of interest commencing at 1.84% and 9% respectively which will be much lower than the rate for the personal loans and credit cards and you credit will be manageable once again.

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