If you're unlucky enough to find yourself with debt problems, you need to get some help and advice.
Calling someone for advice is a big step, but if you are in real trouble with your finances, it's the best way to get things sorted out. If you're at the stage where you're leaving demand letters unopened, and dreading the sound of the telephone because you're being chased for payment, then it's certainly time that you looked for some professional help. You'll be surprised at the choices available to you, and you'll be able to make a start towards getting your money in order.
For those in financial strife, the decision to opt for debt consolidation is one that is never made lightly and it is important to have all the necessary facts at your disposal when choosing this route.
Debt consolidation loans are essentially the process of taking out a single loan to pay off your other outstanding debts and they can prove very successful in achieving this aim. When it comes to debt consolidation, the key aspect to be considered is that of credit rating. Those with a good credit history will obviously be able to obtain loans with better interest rates than those with a poor credit history.
It is important to realise that a bad credit rating can be reversed through debt consolidation as well as through careful money management to ensure that any outstanding debts are honoured. This can have a positive effect on credit scores, which means less of a risk to future creditors.
When deciding upon a debt consolidation loan to get your finances back on track, there are typically two types of loan that will be presented to you:
Secured Debt Consolidation Loan - A secured debt consolidation loan will see the individual provide some form of security, usually in the form of property, in order to secure the loan. This type of debt consolidation offers cheaper interest rates as the debtor is offering collateral in event of non payment.
Unsecured Debt Consolidation Loan - This type of loan won't be able to offer the same low interest rates as the secured debt consolidation loan as the debtor isn't providing any collateral for the loan to be secured against.
When it comes to taking out a debt consolidation loan to reconfigure your finances, it is important that you make the right decision relevant to your finances and situation. Doing your research and asking experts in the field of debt consolidation is of vital importance and should be your first action when your finances are spiralling out of control.
Are you looking for a way out of debt? Consolidation could be the best way forward.
It's easy to underestimate the problems that getting into debt can cause. Most of us are in debt at one point or another - whether it's a mortgage, credit cards, a car loan, or a finance agreement for our furniture. Taking on debt isn't the problem - it's being unable to pay back what we owe! If you're having trouble making payments on a variety of debts, then you may need to consider getting debt consolidation advice.
Anyone can get into debt. People who had perfect control over their finances may find themselves in trouble if they lose their job, or suffer from ill health. Taking out additional loans so that you can make payments on your original debts may seem like a good idea at the time, but the more loans you have, the more money you owe, and the interest builds up quickly. If you are having trouble meeting any of your loan or card payments, and there's no chance of additional money coming in, you should talk to someone about debt consolidation.
Instead of worrying about making a large number of payments to different lenders each month, or trying to decide which lender to pay first, debt consolidation puts all your debts in a single place, so that you only have one monthly payment to make at one interest rate. In effect, you take out a new loan that covers all your existing loans. This lets you pay your other loans off, leaving you with just the new one to pay. This not only satisfies your other lenders, it also helps with your budgeting, because you know exactly what monthly payments you'll have to make in order to clear your new loan. This can help you to regain control of your finances, and get your life back on track.
Bankruptcy is a serious, public, legal process. Consider a debt consolidation loan to keep bankruptcy at bay.
For many people, their financial problems often come through no direct fault of their own. Redundancy, ill health, divorce and bereavement are all life circumstances which can have a serious effect on your finances and, no matter how hard you try, it can be difficult to get back on track. If you're really suffering, you might be considering bankruptcy as a way to clear your debts for good. Before you commit to this process, however, make sure you've considered all the other options available to you - particularly the debt consolidation loan.
What are the pros and cons of debt consolidation as opposed to bankruptcy? There's no doubt that it's very difficult and stressful to be in debt, but bankruptcy should always be your last option:
-Public - bankruptcy is a public process. If you are declared bankrupt or you declare yourself bankrupt, your details will be published in your local paper, and everyone will be aware of your financial position.
-Control - you lose all control of your finances when you become bankrupt. An administrator is appointed to make sure your debts are cleared, and they can sell your house and some of your possessions to do so, as well as using any savings you have and a proportion of your income if you have any. You will be left with enough money and possessions to live on, but everything else will go towards paying your debts.
-Credit record - your credit record will reflect your bankruptcy for a number of years - even after your debts have cleared. This means that it's very unlikely that other lenders will consider offering you loans or credit in the future.
A debt consolidation loan, on the other hand, allows you to raise a single sum of money, which will cover all your debts. You can pay off your lenders, and be left with just one loan and one monthly payment. You are in full control of your finances, you're able to budget more easily, and your credit record will show that you have repaid your debts. No-one needs to know that you're in financial trouble at all.
If you are looking for a debt consolidation loan, let the experts save you time and money by finding the right product for you. Mortgage and Insurance Professionals has only the best mortgage advisers ready to advise you on all your mortgage and insurance needs. For useful debt consolidation loan advice, call us to arrange a no obligation appointment to suit you. Mortgage and Insurance Professionals is the 'people's mortgage broker' with over 3500 mortgage products to choose from, including products that are not readily available on the High Street. Mortgage and Insurance Professionals's experienced advisors could find the ideal product for you.
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