A guide to Debt

HELP WITH DEBT PROBLEMS

A summary of debt is where money is owed to the lender and is an obligation to the borrower to pay back what is owed.

If you are falling behind on payments towards your debts then you must contact your lender immediately.
The sooner you contact them to discuss your situation the more sympathetic and helpful those organisations will be.Look at all options before committing to anything.

DEBT CONSOLIDATION

This is where you take out a loan to pay off all your debts through a single, lower monthly payment, lower interest rate and/or a loan, which extends over a longer period of time leaving you with sufficient funds to live again.

Benefits of consolidating your debts are that you may not have to pay as much interest as you would normally have and, by paying off a loan you will improve your credit rating (provided you do not spend any more money on your credit and store cards).

Before a lender would consider giving you a debt consolidating loan, they will generally assess the credit risk you have and do a credit score. If you have a high amount of debt then you’re more likely to be accepted for a “secured loan” because the lender will have your property as security against the loan.

However you may also get accepted for a “personal loan” provided your credit rating is good and the debts are low.

To apply for a consolidating debt you must shop around for the most competitive interest rate. A lot of consumers fail to do this and end up paying a higher interest rate.