Debt Consolidation Advice? May be Secured Loans can Help You

Debt is a big issue in the UK.  Credit Action reports that the average household debt in the UK in September 2010 is £8,628 (excluding mortgages).  Brits pay a staggering £183 million in interest payments every single day and the Office of Budget Responsibility expect the UK’s total debt to hit £1.823 billion by 2015.

If you have debts, you may be wondering how you can continue to make your repayments.  Money is one of the most common causes of stress and having debts can give you sleepless nights.  381 people will be declared insolvent or bankrupt every day in 2010, equivalent to 1 person every 52 seconds during the working day.

So, if you want to avoid the need to seek professional debt advice, you could consider consolidating your debts using a homeowner loan.

Debt Advice and Debt Help Services

There are hundreds of debt advice companies in the UK.  Some operate on a charitable basis although many are private firms offering debt help.

Debt management companies tend to be able to offer several solutions to your debt problems.  These generally include:

• Bankrputcy
• Individual Voluntary Arrangement (IVA)
• Debt Relief Order (DRO)
• Debt Management Plan

You should always try and avoid formal debt solutions such as bankruptcy or an IVA if you possibly can.  These significantly affect your credit standing and can mean you lose many of your assets including your home. 

A debt management plan can be one possible solution to your debts.  However, it is not unusual for debt management companies to charge a fee of between 10-15% of your monthly payment for their services.

So, if you are experiencing debt problems, why not consider debt consolidation as an alternative?

Debt Consolidation

Debt consolidation is a common and popular method to address your debt problems.  Instead of having lots of credit card or loan debts to various providers, debt consolidation allows you to borrow a sum of money intended to repay all these other borrowings in full.  You are then left with one larger loan and one affordable monthly repayment.

Debt consolidation is worth considering as:

• It saves time as you do not have the hassle of dealing with multiple creditors
• You can repay borrowing on high interest rates (such as credit cards)
• You make one payment every month instead of a number of payments

Consolidate Your Debts Using Homeowner Loans

Homeowner loans allow you to borrow against the equity in your home.  The amount that you can borrow is typically determined by your income and expenditure, your credit rating, the value of your home and the equity that you have.

You borrow a sum secured against your home which will allow you to repay all your other debts in full.  You can generally choose the term of the loan and the amount you borrow in order to keep your repayments at an affordable level.

Just remember that by consolidating unsecured debts into a secured loan, you are putting your house at risk if you don’t keep up your repayments.

Debt consolidation is a practical way to avoid expensive and potentially damaging formal debt solutions.  Rather than destroying your credit rating or putting your assets at risk, debt consolidation homeowner loans can allow you to simplify and organise your debts.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.