Below we have outlined the most common questions asked about debt. Please click on a question to get the relevant answer.
Is my credit rating going to be affected? I am being threatened with court action, what can I do? Can I go to prison for debt? Will I lose my house? What is consolidating debt? What is an IVA? What are debt management services? What is bankruptcy and when should I declare it? Will I be able to get a mortgage or credit in the future?
Consolidating debt is a tactic used by many to get their finances under control and rebuild their credit rating. The idea is that you take out a loan to repay all others outright and are left with one large debt but only one interest rate which is usually lower and more manageable.
For example: Many people take advantage of 0% interest rate deals for transferred debts on credit cards. These deals allow them to put a stop to run away interest rates which only serve to get them deeper and deeper into debt. Others re-mortgage to repay their debts, as a mortgage allows them to repay the loan over a greater period of time for a much lower rate of interest. Re-mortgaging is risky because it carries the risk of losing your house if you fail to keep up with repayments.
Only Finance Ltd is authorised and regulated by the Financial Services Authority, FSA registration number: 466941. Our registered offices are 1 Kings Avenue, Winchmore Hill, London N21 3NA, company number: 05640662. Telephone 0207 377 1805.