Mortgages, Remortgages, Secured Loans and Personal Home Loans
26. Get out of your adverse credit situation
How do you decide which debt consolidation option to take to get out of your adverse credit situation? The best thing to do is to take stock of how much you owe, what you can afford and what you want. From this you will get a better view of what to do next.
If you owe more then £15,000 then an Individual Voluntary Arrangement (IVA) may be right for you. If you can afford a good sized repayment every month then you could take out a bad credit loan. If you need a mortgage or remortgage then look into bad credit mortgages.
Be careful when making enquiries into bad credit loans or bad credit mortgages. You may think you are being wise to shop around for the best deal but each time you enquire, it is seen by lenders as a mini application. This shows up on your credit rating and will score against you as they treat it as a refusal from a rival to give you credit.
There are many products out there suited to debt consolidation in cases of adverse credit. The Individual Voluntary Arrangement (IVA) gives you the most peace of mind but it is only granted after stipulations have been met, you negotiate through and insolvency practioner and 75% of your creditors must be willing to take on the agreement.
An Individual Voluntary Arrangement (IVA) can only be granted to people willing to part with at least £200 per month. If such a formal process isn’t right for you then you could look into bad credit mortgages. This form of debt consolidation product lets adverse credit borrowers buy their house.
Bad credit loans are a more flexible option. Although the interest may be slightly higher you may be able to lower the amount you repay monthly.
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