Mortgages, Remortgages, Secured Loans and Personal Home Loans
06. More adverse credit than the public realise.
If you owe money and you can not keep up with your payments you may fall into what is known as adverse credit. If this is the case then you should consider some form of debt consolidation perhaps through a bad credit loan or a bad credit mortgage.
The most secure way is through an Individual Voluntary Arrangement (IVA). This is a way of paying off as much of the debt as possible in a sensible way. You have to owe at least £15,000 and be able to pay at least £200 a month and sustain paying your debt for at least 5 years. Although it may seem a lot of money at the time the limitation of knowing that ALL your debt in the end will be written off should offer comfort. However, if you don’t wish to follow this route you may decide on a bad credit loan or a bad credit mortgage. These are both forms of debt consolidation.
This is where one small monthly repayment is all you have to pay on a regular basis. However if your adverse credit is serious it may only grant a temporary reprieve before your creditors start to hassle you again. From considering what form of debt consolidation is right for you, you can help yourself to move forward from debt. An Individual Voluntary Arrangement (IVA), a bad credit loan or a bad credit mortgage are all ways of dealing with your adverse credit. Take the time out to consider which option is the best one for you.
A formal Individual Voluntary Arrangement (IVA) may give you the peace of mind you require, though the amount of repayment can be reviewed and changed during its lifetime. It is best to keep your advisor informed of any changes to your income.
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