|
Bad Credit Debt Consolidation Loan
Debt Consolidation Loans for Bad Credit
Nowadays, many people can get into a bad credit situation if they do not keep track of their income and expenditure. Many young executives suddenly find that they are being offered credit cards by various...
Debt elimination & debt consolidation can work together
Debt elimination has always been my goal. But on this day, when
I received the bill for the sudden replacement of the clutch in
my car, the VISA bill and word that my daughter needed
orthodontics for her teeth, how was I ever going to realize...
How to Find Debt Consolidation Solutions
Taking loans has become a way of life because of the convenience
it offers. Within manageable limits loan repayment does not
create any problems. However there is no harm in looking for
better options.
A debt consolidation solution is any...
Reduce Debt - How To Prevent Bankruptcy By Reducing And Consolidating Your Debt
You can prevent bankruptcy by consolidating your debt with the
help of a loan or debt consolidation agency to reduce your
monthly payments and quickly pay off your liability. But before
signing final paperwork, you should develop a financial plan...
Reduce Your Debt - How To Use Debt Consolidation To Get Yourself Out Of Debt Permanently
Debt consolidation can get you out of debt permanently if you
make it part of a financial plan. Within five years, you can
have your unsecured loans paid off and on your way to debt-free
living. The key is to plan for the future.
Get Your...
|
|
| |
|
|
|
|
|
|
UK Credit Card and Debt Consolidation Loans
Your current situation.
You have got several credit and store cards and several loans. You are finding it difficult to make the payments
each month. Generally you do make the required payments but this means that other parts of your like are suffering. You’ve got no spare cash for the occasional night out or weekend away. Even making the minimum payments each month means that the outstanding amounts are never reducing.
The equity in your house.
If you have owned your house for several years there is a chance that you have something called equity. This is the
difference in the current value of the house and the total amount of the outstanding mortgage. So if you have an
outstanding mortgage of £80,000 and your house is now valued at £170,000 you have got equity of £90,000. There are certain companies that will lend you money based on this equity. They are safe and secure in the knowledge that if you default on your payments that they can get their money back by selling your house. That's the small print "Your home is at risk if you do not keep up payments…"
You can use this new loan to pay off all your current credit cards and loans and have a reduced monthly payment. This method of using the equity in your house is called loan consolidation.
Current loans and credit cards
Lets says that the total amount outstanding on you credit cards, store cards and loans is £20,000. If the equity on your house is £90,000 you should have no problem getting a second mortgage of £20,000. However you will still need to
be in employment and prove that you can make the monthly
payments.
Documentation.
Before you apply for a second mortgage with the intention of paying off your existing debts you should get all your
paperwork together. This will save you time and make the loan process much quicker. Here is a list of the
documentation that you will need. Different loan companies will ask for different things so just get all the documents together ready for whatever they want.
Last three months payslips.
Last three months bank statements.
Council Tax bills.
Electricity bills.
Gas bills.
Water bills.
Marriage certificate.
Passport.
Driving licence.
Not all those documents are essential but it will slow the process down if you don’t have them available.
You’ll also need full details of the credit cards, store cards and loans that you want to pay off. This includes the name of the companies, the account numbers and the outstanding amounts.
The new company will actually issue with individual cheques that you send to these companies, you don’t actually get a cash payment to
yourself.
Caution
Let's say that your loan application has now been processed, you have paid off all those outstanding debts. The weight has been lifted off your shoulders. You now need to be very careful. If you run up any more debts at this point in your life then you will be in deep trouble.
Make sure you cut up and return all but one of your credit cards. You need to keep one so that you can use it for purchasing things on the internet and making hotel
reservations etc. Maintaining one credit card will ensure that you keep a good credit history. Do not apply for any
new credit cards or loans.
Your monthly payments on the new loan will be significantly lower than the total of your previous credit card payments. But, you need to take advantage of this situation, it is no use spending the extra money on useless luxury goods. You have to use this opportunity to stabilise your financial life. I suggest that you save at least half of the extra money that you now have each month. This will give you the chance to build up a buffer in case you suddenly find yourself unemployed.
If you need some help in deciding to be disciplined just consider what your life will be like if your home is repossessed.
The bad news
Although your monthly payments are now lower, the reason for this is that you will be paying the loan off over a much longer period. This is how the loan companies make their money. And because you are paying the loan off over a much longer period you will also be paying a lot more than the value of the actual loan. For this reason it is vitally important that you discuss all possibilities with your Independent Financial Advisor.
Summary
Getting a debt consolidation loan can relive you of a lot of stress and worry. But this comes with a long term financial penalty. It is thus vitally important that you don’t run up any more debt. Work at paying off that loan as quickly as possible and regaining your financial freedom. For moreinformation visit: www.ukmortgagewithbadcredit.com
Visit http://www.ukmortgagewithbadcredit.com for more information on debt consolidation.
Disclaimer: Please note, I am not a Financial Advisor and this article is for informational purposes only. You MUST
consult with an Independent Financial Advisor before entering into any financial agreements.
Copyright 2005 ukmortgagewithbadcredit
About the author:
If you want to learn more about debt consolidation loans please visit the following web site. http://www.ukmortgagewithbadcredit.com
|
|
|
|
|
| Debt consolidation calculator, debt calculator - MSN Money |
| Consolidating your debt in a single low-interest loan can save on interest payments and speed the process of paying off debts. This calculator will help you ... |
| moneycentral.msn.com |
|
| Your 3 worst debt consolidation moves - MSN Money |
| If you're up to your eyeballs, the fantasy of debt consolidation can suck you right in. Watch out for the slippery side of consolidation loans, ... |
| moneycentral.msn.com |
|
| DebtConsolidation.Com - 1-800-CUT BILLS® (1-800-288-2455). We Make ... |
| (1-800-DR. CREDIT, 1-800-372-7334). The leader in Debt Consolidation! Zero Percent 0%APR interest for Life! on your high interest/balance credit cards. |
| www.debtconsolidation.com |
|
| Debt Consolidation - Loans DIY Forums and Ranking chart - BBB Member |
| Is Debt Consolidation good for you ? Get FREE counseling from a BBB member company. Avoid bankruptcy, become debt free, deal with collection agencies and ... |
| www.debtconsolidationcare.com |
|
| Debt Consolidation Loans - Consolidate Debts |
| Debt Consolidation Connection offers FREE debt consolidation quotes to help you avoid bankruptcy and consolidate debts and loan payments. |
| www.debtconsolidationconnection.com |
|
| Consumer Credit Counseling and Debt Consolidation |
| National non-profit credit counseling agency offers financial education and debt consolidation. |
| www.consumercredit.com |
|
| Dangers of debt consolidation |
| Are you tempted to take out one big loan to pay off your various debts? Look closely before jumping into debt consolidation. It could cause as many, ... |
| www.bankrate.com |
|
| FREE QUOTE. Get your debt consolidation quote here from the ... |
| Are you in debt? ... If so we can help you consolidate. Great loans from leading companies; all standards of credit looked at with over 200 loan plans. ... |
| www.moneyweb.co.uk |
|
| E-LOAN: Debt Consolidation Loan, Consolidate & Pay Credit Card ... |
| E-LOAN offers a variety of debt consolidation loans to save you money, lower your payments, or reduce taxes. Search rates and apply online. |
| https: |
|
| Debt consolidation - Wikipedia, the free encyclopedia |
| Debt consolidation entails taking out one loan to pay off many others. ... Debt consolidation can simply be from a number of unsecured loans into another ... |
| en.wikipedia.org |
|
| Debt Consolidation - Loans, Debt Management, Consolidate loan ... |
| Get FREE Debt Consolidation advice to consolidate debt and loan payments. Avoid bankruptcy, become debt free and lower your payments. |
| www.mortgageloan.com |
|
| The Truth About Debt Consolidation |
| Find out why Dave Ramsey says debt consolidation is a dangerous way to try to get out of debt. |
| www.daveramsey.com |
|
| IVA debt advice | debt consolidation |
| IVA, Debt consolidation, bankruptcy and IVA advice free from the Debt Counsellors. |
| www.debtcounsellors.co.uk |
|
| debt consolidation credit counseling free credit reports you'll ... |
| Debt consolidation credit counseling giving free credit reports for credit repair and consumer credit counseling. Bill consolidation by utilizing low ... |
| www.creditinfocenter.com |
|
| bizjournals: Debt Consolidation - Consolidation Debt - Debt ... |
| Debt Consolidation - Information on consumer credit, bankruptcy, loans and debt consolidation from the Internet's leading source for national and regional ... |
| www.bizjournals.com |
|
| Debt Consolidation - Powerforum Plus+ Pro (www.hotboards.com) |
| Get the best debt consolidation program available online. Pay off all your old bills and get rid of debt for good. christian debt consolidation debt ... |
| www.hotboards.com |
|
| Powerforum Plus+ Pro (www.hotboards.com) |
| consolidation credit debt debt free info relief debt consolidation quote consolidation debt debt free info refinance relief consolidation debt search strong ... |
| www.hotboards.com |
|
| Debt Consolidation Loans |
| Debt Consolidation Loans helps consumers reduce their debt through low-rate home equity loans and second mortgages. |
| mybestdebtconsolidation.com |
|
| Federal Trade Commission |
| Self help, debt consolidation, credit counseling, bankruptcy. |
| www.ftc.gov |
|
| Federal Debt Consolidation Services - credit cards loans ... |
| A free online application for debt consolidation. Credit cards, medical bills, old debts and unsecured loans. |
| www.federaldebtservice.com |
|