Mortgages, Remortgages, Secured Loans and Personal Home Loans
25. Debt consolidation products
A bad credit rating leads to adverse credit. There are many debt consolidation products out there in the market which claim to help you. Whether you need a bad credit loan or an Individual Voluntary Arrangement (IVA) or a bad credit mortgage you need to establish a few things first.
How much do you owe in total? If you have many creditors it may be tricky to establish this figure and this may be more then you think. Find out how much you owe each one at the present moment in time and add it all up to arrive at a total figure. How much disposable income do you have? This is the difference between your average household income and your reasonable average living expenses.
Once you have these figures then you can narrow down which form of debt consolidation would best suit your circumstances. If you have adverse credit and need a mortgage go for a bad credit mortgage. If you want to borrow more money to pay for something then look up a bad credit loan. If you have over £15,000 in debts then you may best be served by an Individual Voluntary Arrangement (IVA).
They all have different pros and cons and you should be aware that because the creditor is taking on a greater risk on your adverse credit. Once you have decided your debt consolidation is best sorted by a bad credit loan or an Individual Voluntary Arrangement (IVA) or a bad credit mortgage investigate as much as you can about your preferred option.
Make sure you are up to the task of a sustained repayment plan else you will get into severe difficulties if you renege on any of these agreements. If you do manage to stay the course your credit rating may be repaired and easier to get credit.
These Articles are copyrighted and may not be reproduced without permission.
Copyright © 24/07/2008 Brabazon Group Ltd
