Discover Card is serious about safeguarding your personal information online.When you access your account and perform transactions on the Discover site we use 128-bit-Secure Sockets Layer (SSL) encryption technology-the most widely used method of securing internet transactions available today.Interest is the fee charged by the creditor to the debtor, generally calculated as a percentage of the principal sum per year known as an interest rate and generally paid periodically at intervals, such as monthly. Although there is variation from country to country and even in regions within country, consumer debt is primarily made up of home loans, credit card debt and car loans.Household debt is the consumer debt of the adults in the household plus the mortgage, if applicable.In many countries, especially the United States and the United Kingdom, student loans can be a significant portion of debt but are usually regulated differently than other debt.The bulk of the consumer debt, especially that with a high interest, is repaid by a new loan.Most debt consolidation loans are offered from lending institutions and secured as a second mortgage or home equity line of credit.
Lenders have fixed costs to process payments and repayment can spread out over a larger period.However, such consolidation loans have costs: fees, interest, and "points" where one point equals to one percent of the amount borrowed.In some countries, these loans may provide certain tax advantages.Because they are secured, a lender can attempt to seize property if the borrower goes into default.
Personal loans comprise another form of debt consolidation loan.
Individuals can issue debtors a personal loan that satisfies the outstanding debt and creates a new one on their own terms.