Mortgages, Remortgages, Secured Loans and Personal Home Loans
14. Ideal form of debt consolidation
If you have adverse credit you may be shopping around for an ideal form of debt consolidation that may be just right for you. There are many options available to you. an Individual Voluntary Arrangement (IVA) or a bad credit loan or a bad credit mortgage are some of these financial products that are tailored for people with a bad credit rating.
Whichever you choose it is important to work out in the first instance how much you can afford to repay each month. From this it can help to narrow down what is available to you.
If you owe more then £15,000 then an Individual Voluntary Arrangement (IVA) may be the right solution for your adverse credit. However if you owe less or can not afford to pay the necessary minimum of £200 per month then you should consider a bad credit mortgage as a good way of getting debt consolidation.
With a bad credit loan there are two types available a secure loan where something very valuable to yourself such as your house is used as collateral. The amount you must pay and the interest rate are worked out from your credit score, the value of your house and the amount of overall debt.
An unsecured loan are a lot more difficult to acquire. It represents a high level of risk to the lender. Be careful when investigating whose loan is right for you as any enquiry will involve a credit rating check. Each one of these can count against you.
If a bad credit loan does not sound suitable and you don’t like the idea of a bad credit mortgage then an Individual Voluntary Arrangement (IVA) may be more appropriate. This goes through a formal process but at the end of the agreement any remaining debt is written off.
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