|
|
|
All About Debt Consolidation Loans
Debt consolidation loans can be the answer to a number of financial problems, but before you take the plunge, make sure you're well informed.
What is a debt consolidation loan?
Debt consolidation is when you arrange a single loan to cover a...
Canadian Debt Consolidation
Life throws people a number of challenges often on a daily basis and unfortunately, some of those are financial challenges. The loss of a job, an illness and many other situations can make paying off loans difficult to do. Sometimes people simply...
Filing Bankruptcy And 3 Helpful Alternatives To Eliminate Your Debt
You've got some serious debt problems. Take heart in the fact
that a lot of people do these days. The key to getting out from
under debt is to evaluate the situation you're in, and then to
decide if you're willing to do what it takes to change...
How to Find the Best Debt Consolidation Secured Loan
If debt is a way of life for you, it's time for you to consider finding a debt consolidation secured loan. This loan is designed so that you can pay off some or all of your debt, leaving you with a single low monthly payment instead of multiple...
The Pro's and Con's Of Debt Consolidation Loans
You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do? Some people...
|
|
| |
|
|
|
|
|
|
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
|
|
|
|
|
| Advertisements Promising Debt Relief May Be Offering Bankruptcy |
| Cautions consumers about ads in newspaper, magazine and telephone directories that offer quick fixes for debt problems. |
| www.ftc.gov |
|
| Welcome to Debt Relief International |
| Welcome to the web site of Debt Relief International. |
| www.dri.org.uk |
|
| Debt relief steps, your free guide to debt help. |
| Articles on debt relief, and credit management and repair. |
| www.debtsteps.com |
|
| Factsheet - Debt Relief Under the Heavily Indebted Poor Countries ... |
| The HIPC Initiative is a comprehensive approach to debt reduction for heavily indebted poor countries pursuing IMF- and World Bank-supported adjustment and ... |
| www.imf.org |
|
| Special report: debt relief | Special reports | Guardian Unlimited |
| February 6: A year ago the Guardian set out to track the west's promises of action for Africa on aid, trade, health and debt relief. As G8 finance ministers ... |
| www.guardian.co.uk |
|
| Debt Relief Options - Findlaw for the Public - |
| Welcome to Debt Relief Options. This section contains information about the ... To begin, select one of the Debt Relief Options topics from the list below ... |
| bankruptcy.findlaw.com |
|
| William Brewer |
| The Brewer Law Firm. William E. Brewer, Jr., Attorney at Law Board Certified Consumer Bankruptcy Specialist. 619 N. Person Street Raleigh, NC 27604 ... |
| www.debtrelief.com |
|
| Debt Relief - InCharge Debt Solutions |
| There are many ways to get out of debt, for good, and it may be easier than you think. The first step is knowing your options, the second step is taking ... |
| www.incharge.org |
|
| Economic Policy and Debt |
| May 2006, IMF And World Bank Support Cameroon’s Completion Point Under The Enhanced HIPC Initiative And The IMF Immediately Grants 100 Percent Debt Relief ... |
| www.worldbank.org |
|
| Economic Policy and Debt - The Enhanced HIPC Initiative |
| The Initiative’s debt-burden thresholds were adjusted downward, which enabled a broader group of countries to qualify for larger volumes of debt relief. ... |
| www.worldbank.org |
|
| Debt relief - Wikipedia, the free encyclopedia |
| Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. ... |
| en.wikipedia.org |
|
| Debt Analyzer, Debt Reduction Software, Home Page |
| Debt Elimination at its best! Potential savings of hundreds or thousands of dollars! Build debt reduction, timed elimination or consolidation schedules. |
| www.debtanalyzer.com |
|
| Superior Debt Relief |
| We help you get rid of credit card debt much faster than you may believe possible with credit card debt settlement and negotiation tactics, providing debt ... |
| www.superiordebtrelief.com |
|
| Debt Relief - Social and Economic Policy - Global Policy Forum |
| Aid Inflows, Debt Relief Yet to Translate into Reduced Poverty (March 20, 2006) ... Fearing that the IMF could tie debt relief to economic benchmarks, ... |
| www.globalpolicy.org |
|
| Debt Relief - Global Policy Forum - Social and Economic Policy |
| Debt Relief - Global Policy Forum - Social and Economic Policy. The Debt Relief Page Has Been Moved to: ... |
| www.globalpolicy.org |
|
| BBC NEWS | Business | Q&A: African debt relief |
| BBC News looks at the progress of international debt reduction efforts, and the sticking points which continue to hamper the process. |
| news.bbc.co.uk |
|
| Debt Relief Australia - Start Reducing Debt Today! |
| Debt Relief offers Australians in debt assistance with finding the most appropriate debt relief solution. |
| www.debtrelief.com.au |
|
| Debt Consolidation Australia, Debt Relief & Bankruptcy Information |
| Specialising in debt agreements, mortgage refinancing and bankruptcy. Company profile, calculators, solutions, media releases, testimonials and existing ... |
| www.foxsymes.com.au |
|
| Oxfam - Debt and Aid - Debt Relief for Nicaragua: breaking out of ... |
| Oxfam policy paper on relationship between international debt servicing and poverty. Linked to table of contents and also zipped for download. |
| www.oxfam.org.uk |
|
| What debt relief means for Africa | csmonitor.com |
| This weekend's $40 billion debt cancellation deal could spark major improvements in the lives of the world's poorest people. |
| www.csmonitor.com |
|
|