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Debt Advice - Debt eating you up
You are living on the edge, financially, but you are not alone. You may
not have a late payment or default on your credit report yet, which is
good, as we see late payments on most credit reports, and defaults on
around 30%, so it’s important to try to use your credit standing to move
you to a better position.
- Add up all your credit cards and
think about taking out
a loan to consolidate them. Average credit card rates are 16%
and average loan rates just over half that level, so significant
savings are possible.
- Before you apply, check your
credit report
to make sure that it is error free so you have the best chance of
success.
- If your card debt is over £10,000,
apply for two loans of half the amount you need – each lender will
think you are shopping for credit and you’ll have a better chance of
success applying for smaller loans.
- Try to keep your loan term as
short as you can. Repayment over 3 or 4 years is best if you can
manage it. Don’t be tempted to extend the term beyond 4 years just
to save a few tens of pounds in the monthly repayment, the increase
in the total cost of credit will be horrendous.
- Do not opt to take payment
protection insurance. This adds to the monthly cost considerably,
and opting to take it won’t improve your chances of getting the
loan.
- If you have a mortgage and have
some equity in your property, think about
re-mortgaging and consolidating your card and loan debt to a new
mortgage. A new mortgage company will probably
give you the best deal.. Call 1st Call 4 Mortgages on 08458 386938
to discuss your options.
- Go through the points recommended
for Short term problems to
see if any can also help you.
If you can’t get a loan or re-mortgage, try our suggestions for
Going Backwards.
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