Debt from Personal & Secured Loans, Car Financing and Mortgages
Why it's Easy to Get into Debt if you Borrow Money
In the UK hundreds of lenders compete to persuade people to borrow from them at high interest rates.
Therefore it is not surprising that debt arising from personal and secured loans, car financing and expensive mortgages is as widespread as it is.
In fact this year, the average UK household had debts of £4,092 and the majority of this stemmed directly from borrowing on these products.
How To Settle Debt from Personal & Secured Loans, Car Financing and Mortgages
Debt consolidation loans and debt management programmes are the first things that many people think of in order to settle their debt problems.
The trouble is that they can cause more problems than they solve.
The Disadvantage of Debt Consolidation Loans
- The overall cost of a debt consolidation loan can be very high
- As debt consolidation loans are secured against your property, your home may be at risk if you don't keep on top of the repayments.
- As the interest you have to pay on a debt consolidation loan fluctuates with the base rate, you don't have any control over your repayments if interest rates change.
The Disadvantage of Debt Management Programmes
- Debt management programmes are based on an informal arrangement between the creditor and debtor which means that your creditors will not be bound by the agreement.
- Debt management programmes have a negative effect on your credit rating.
The Advantages of Setting up an IVA
An IVA (Individual Voluntary Arrangement) might be a better debt solution for you as it lacks the disadvantages of debt consolidation loans and debt management programmes.
An IVA is a formal and confidential agreement with your creditors whereby they write off a significant portion of your debt (often as much as 70%). In return you make regular monthly repayments over an extended period of time.
Debt Advice Service
We operate a free and independent national debt advice service to enable you to discuss your debt problems and possible solutions to them with an impartial expert.
Once we have helped you to identify which solution would work best for you, we can also help you set it up- free of charge and without any obligation.
Click Here: To Apply For Free and Impartial Debt Advice
Whether you are in debt as a result of car financing, personal or secured loans or an expensive mortgage- our specially trained debt counsellors will listen to your problems and give you free and impartial advice.
This service is confidential and you are under no obligation whatsoever.
To contact an advisor call 0800 138 5445. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.