Mortgages, Remortgages, Secured Loans and Personal Home Loans
02. In debt and can not afford to repay
If you are in debt and can not afford to repay what you owe at the moment, various options are still open to you. You may decide to go for a bad credit loan or a bad credit mortgage depending on what you require the money for. Being stuck with adverse credit you could set up a form of debt consolidation or if you have over £15,000 of debts, an Individual Voluntary Arrangement (IVA).
The best thing to do is to review how much you have coming in and how much you need to spend to find out how much you can realistically afford to pay off each month. This can then be offered to your creditors by a professional adviser to find an acceptable remuneration.
If a bad credit mortgage or bad credit loan is not for you then you may wish to apply for an Individual Voluntary Arrangement (IVA), which is a form of debt consolidation. Your first step would be to approach an Individual Voluntary Arrangement (IVA) provider who will give you a debt adviser to decide on the next steps. They can decide if the amount you can offer will be accepted by your creditors. They then pass a statement of affairs on to an Insolvency Practioner (IP).
Despite your adverse credit rating the creditors may agree to take on this formal arrangement. You make one manageable monthly payment. At the end of the specified term (usually five years) the rest of your debt is written off. This can be up to 75% of your debts.
If your debts are under £15,000 you may prefer to look at debt consolidation, a bad credit loan or even a bad credit mortgage. All these processes to deal with adverse credit are less secure then an Individual Voluntary Arrangement (IVA), but may have the flexibility that suits you.
Whatever you decide the most important step is taking action now to repair your adverse credit rating. Look at the range of options available and decide on a course of action so that you can have a more financially secure future.
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