1 in 4 Borrowing To Consolidate Debt Go On To Borrow More.
Friday, April 4th, 2008A quarter of people taking out a loan to consolidate their debts go on to borrow more, according to a survey commissioned by Uswitch. (more…)
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Biased Debt Advice From The CCCS?
Thursday, January 24th, 2008The Consumer Credit Counselling service uses its charity status to boost its claim to be champion of the struggling debtor, but is the advice it gives always the best advice?
National newspaper survey bemoans lack of service from free debt advice organisations
Wednesday, November 21st, 2007The Sunday Express ran an article on 18th Nov 2007 on the responses from some commercial debt advice organisations against some free organisations. (more…)
Debt Jugglers start to feel squeeze
Thursday, November 15th, 2007Credit card “rate tarts” who rely on being able to shift their debts on to a succession of temporary interest-free deals could struggle to get accepted for a new card as the credit crunch hits plastic, say experts. (more…)
Beware of Loan Applications on Finance Comparison Sites
Friday, October 12th, 2007The temptation on a Money Comparison website is to always apply for the lowest APR loans. However if you don’t have a very good credit history, this could make it worse. (more…)
Be cautious with home equity loans to consolidate debt.
Thursday, August 16th, 2007If you fail to maintain payment you can’t use a debt management company to help you out.
Remember that a secured loan is secured from the lenders point of view, not yours. They have the security of knowing they can force the sale of your home should you fail to maintain payments.
Turning unsecured dent in secured debt, so to can spread the payment over a longer period may seem to be a solution to unaffordable credit repayments, but the consequences of not being able to maintain payments are worse. A least with unaffordable unsecured debt, you can use the services of an debt management company to get payments reduced, but they can’t help with secured borrowing.
If you take out a debt consolidation Loan, do not treat yourself.
Thursday, August 9th, 2007Do not be tempted to add more than need onto the loan, and head for the travel agents.
Many people consolidating debts into one, longer term loan, borrow a bit more and treat this money as a surplus than can by used for non essential spending. Do not be tempted to do this.
Consolidating debts into one loan should be only be done to make your monthly loan repayment lower so can afford to pay back your current debts. It should bot be done so you can afford more debt.
This is a path many have taken and it will only lead to financial misery when you can’t afford your monthly repayments, are 10s of £1000s in debt and you find yourself completely disenfranchised from most financial services.
Do your maths with consolidation loans.
Tuesday, July 31st, 2007Consolidating debt into one loan normal comes with a lower interest rates, but there is a catch.
Your consolidation loan may result in lower monthly payments, especially compared to store and credit cards. However the catch is that the term of the loan is longer and therefore you’ll be paying back more interest in total.
You may save money on a debt management programme. An added benefit of this is if you fall into difficulty when on debt management, you can renegotiate repayments to suit affordability. This may be harder if you only have one creditor and may put your home at risk if the loan is secured on your property.
