Consolidating debt through remortgaging, obtaining a secured or an unsecured loan and is the solution that most people automatically choose. This may increase the total amount you repay, but if keeping your monthly payments down is a priority then a loan which lets you spread the cost over a longer period could be right for you.
You will find below more information on different methods of raising finance:-
Remortgaging
Borrowing additional money on your mortgage is often the cheapest way to raise extra funds. There are a range of lenders who offer remortgages to consolidate debt so it is good to shop around.
You need to carefully consider whether you can afford the new mortgage repayments. Please use our debt calculator to review your income and expenditure.
Secured Loans
Secured loans can be completed relatively quickly and are more appropriate if you need to raise less than £25,000. The monthly interest rate will be higher than with a remortgage, but the term of the loan is usually shorter.
Unsecured Loans
Consolidating your debt through an unsecured loan is preferable to a loan that is secured on your property. Unsecured loans almost always require good to excellent credit and the interest charges are generally much higher especially if you have impaired credit.
Word of Warning
Debt consolidation will not cure your problems if you don't rectify the true cause of your debt. If you have previously lived beyond your means and your spending habits continue, you will end up back in debt with your property and livelihood possibly at serious risk.
Your home is at risk if you do not keep up repayments on your mortgage or secured loan. There is little sense in securing your debts if you cannot keep up the repayments. With interest and charges you will significantly increase the level of debt outstanding.
Please contact The Debt Advisor Ltd today. We will be able to recommend the best solution for you based on your individual circumstances.
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