Peace of Mind through Debt Consolidation Advice
Debt consolidation advice can be worth its weight in gold – quite literally – in consideration of the savings that debt consolidation can bring to the individual consumer.
Consolidating debt usually refers to bringing various debts under one roof, by merging them into one single, manageable debt.
Debt consolidation is possible in various ways, although it must be said that consolidating debt has grown more complex in recent years, as lenders, chastened by negative publicity and under the watchful eye of the regulator, have come under pressure to tighten up their lending strategies in general. All the more reason to avail of debt consolidation advice from a qualified, independent financial adviser.
Do you need debt consolidation advice? Contact us now by making a financial advice enquiry or freephone 0800 678 5929
When you seek to consolidate debts by merging them into one single loan, good debt consolidation advice will tell you that the type of loan will vary, depending on the amount you require.
Debt consolidation advice – secured or unsecured loan?
Consolidating debt up to £15,000 may be possible with an unsecured loan, depending on your previous credit record, your salary or household income, and the other outgoings you have. Good debt consolidation advice will always take account of the concept of ‘affordability’, and your adviser and lender may be concerned to ensure that by consolidating debt, your monthly outgoings will reduce, not increase.
Debt consolidation help of this kind is harder to come by today (2010) than several years ago, however, and may now only be possible for those with a good credit record, and even then perhaps only through your own bank or mortgage lender, with whom you already have a good relationship.
When consolidating debts in relation to credit cards, another good point of debt consolidation advice relates to the processes open to credit card companies, in pursuit of debt arrears. While a credit card is an unsecured loan, in some cases a court order known as a ‘charging order’ can be obtained, transforming that unsecured debt into a secured debt, usually secured against your home. This means in effect that the credit card company can then apply to force you to sell your home, in order to pay off your debt.
Debt consolidation advice based on secured loans
When seeking debt consolidation help for amounts greater than £15,000, it is almost certain that only a secured loan would be available from lenders. This means that your loan would be secured against your home, and the first point of good debt consolidation advice is that your house may be at risk, if you default on the loan. There is no lower limit at which a creditor can apply to force the sale of an asset, in the case of an unpaid secured loan.
In addition to debt consolidation loans, debt consolidation advice can also cover such topics as creating a debt management plan and Individual Voluntary Arrangements (IVAs).
Are you interested in debt consolidation advice? Contact us now by making a financial advice enquiry or freephone 0800 678 5929
