Consolidate Bad Debt (The overall cost for comparison is APR 14.5% typical variable.)
Not all debt is bad, and although you might feel overwhelmed by your outgoings each month, it is a good idea to take a step back and look at where your debt lies.
You could consider good debt as a form of investment such as a mortgage which you are using to pay for your home as, at the end of the repayments, you have a home of your own. Another example could be a student loan as you are investing in your own education.
Then there is bad debt and, although debt is debt, this is debt which contributes to an unhealthy financial situation. The most common culprits of bad debt are credit cards, store cards and catalogue debts. Bad debt is used to accumulate everyday items which are classed as non-essentials. As bad debt is commonly unsecured it means that you are paying high levels of interest so you might be finding it hard to see your debts go down in size.
Solving Bad Debt Problems
If you think you have a problem with bad debt then there are things which you can do to which will help your financial situation. A debt consolidation loan might be the right solution for you if you have equity in your home and can afford the new loan payment as you could benefit from a lower interest rate.
But remember, although a debt consolidation loan can reduce your monthly outgoings, it does come with some additional risks. The loan will be secured against your home which means you should ensure that you can meet the new loan payment as failure to make payment to the debt consolidation loan will put your home at risk. You should also refrain from spending on the debt that you have consolidated, as this will just increase your total debt and your financial strain.
Can I get a Loan to Consolidate Bad Debt?
If you are struggling with bad debt then you may have missed payments to your creditors which will leave you with a bad credit history. Having a bad credit history means that you will find it much harder to get accepted for unsecured credit at a good interest rate.
A bad credit rating could also mean that a loan could be offered to you with a much higher interest rate than normal. This is where Debt Consolidate could help, we specialise in getting people accepted who have been turned down in the past because of a bad credit history. We could find debt consolidation loans at competitive interest rates which can help you manage your debt through the consolidation of your bad debt.
For further advice about how to consolidate bad debt, please call Debt Consolidate today. Our expert loan advisors will go through your unique circumstances and will help you to find a loan which is right for you. Call free today for a no obligation quotation on 0800 0481 770.
LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.
DebtConsolidate.co.uk is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.
