UK Debt consolidation loans
1. What is a debt consolidation loan?
A uk debt-consolidated loan is designed to replace the many smaller loans that you may have accumulated over the years and put them all together so instead of making many payments to your lenders you will make the one payment on your consolidated loan. These loans are highly efficient when used properly.
2. What are the advantages of debt consolidation?
There are many advantages to debt consolidation. They can reduce your monthly payments and loosen up your cash flow. If you are making just the one payment it makes it a lot easier to deal with and for some people uk debt consolidation can give them the second chance they were looking for.
3. Will I have to deal with my other creditors after a loan like this?
No, you won't have to deal with your other creditors. When you get a debt-consolidated loan the lender will pay off all your debts and you won't have to worry about them any more. The lender will take care of all your needs when it comes to this.
4. Will I need collateral for a debt consolidation loan?
No, there are two types of loans offered in debt consolidation and they are secured or non-secured loans. This will depend on your credit history and on how much money you need to borrow from the lender. A secured loan requires your home or something of equal value put up against the loan. A non-secured loan requires your signature.
5. Will I have bad credit by getting a debt consolidated loan?
No, you will not have bad credit. In fact you will end up with better credit than trying to struggle with bills that you're finding difficult to pay. If you have stretched your income too far by accumulating a mountain of small bills, this is one way of taking the pressure of and ending up with one easy monthly payment.
6. Can a mortgage be included in a debt-consolidation loan?
Yes a mortgage can be included and it is a known fact that debt consolidation loans have saved some homeowners from losing their property and a fresh start to do it right this time. It is a wise thing to do if you find you are getting bogged down with to many payments and not enough money to cover them.
7. How should I apply for a debt-consolidated loan?
First of all to apply for a debt-consolidated loan you should shop around for the best deal you can get. Many companies offer different interest rates so by doing your homework first you may be able to get a lower interest rate and start saving money before you get the actual loan.
8. Wills owning my own home help me to get a better deal?
This depends on several factors, such as the amount of equity you have built up over the years and if you have a first, or in some cases, a second mortgage on your home. If what you owe on your home is less than the value, it has the appearance to be more appealing, to the lender and make the loan much easier.
9. How much can I borrow on a debt consolidation loan?
This will depend on your debt to equity ratios. This is what determines the amount you can borrow. In other words the more equity you have in your home the higher the amount you can borrow will be. You will have to make sure that the amount you can borrow can take care of all your accumulated bills in order for you to be left with one monthly payment.
10. What happens if I'm not a homeowner?
There is help for those that are not homeowners and still have good credit but too many payments to keep up with. Lenders offer what is known as a credit card that will pay off all your small bills and leave you with one payment. This is still a consolidated loan but on a smaller scale.
11. If I get a credit card consolidated loan how should it be handled?
The most important thing with this type of debt consolidation is to make sure you destroy the old credit cards and not use them again. If you do, you are just piling up another bill on top of what you had to begin with. Get rid of the old cards and you will come out of your debt dilemma just fine.
This section contains questions and answers about uk debit consolidation loans - please remember that when dealing with money you should set up a meeting with a financial advisor in your city. Use our uk directory on the left menu and find a financial advisor near you to talk about debit consolidation loans in the uk and how it can benefit you.
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