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Below, you'll find extensive
information on leading mortgage broker articles and
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Debt Consolidation Loan: Is It The Only Answer?
By SeanH-9584
Have you found yourself
financially over-committed? Don�t think you�re alone �
far from it.
Nowadays it�s all too easy to find yourself over-stretched.
�You may have a student loan to repay before you even
start.
�The high price of houses means that mortgage
payments are increasingly hard to afford.
�You receive offers of new credit cards by almost every
post.
�Almost every store you go into is anxious to give you a
store card.
�Even your bank sends you tempting offers of loans to
buy the new car or the luxury kitchen you�ve always
wanted.
One day you suddenly wake up to the fact that you have
too many commitments, mostly at very high interest rates.
And your monthly income is no longer enough to cover it.
Plus with so many different payments going out, it�s
easy to miss one and end up in trouble.
What are your options? Is this where you go for a debt
consolidation loan? Or are there alternatives?
�Credit card. One alternative to a debt consolidation
loan is to roll all your debts on to one credit card.
This does have the advantage that you only have one
monthly payment to make instead of several. But your
interest payment will be huge. You are not helping your
overall financial situation by doing this. What�s more,
there is the temptation to regard your debts as �out of
sight, out of mind�, and start running up other debts on
store cards, other credit cards, etc.
�Remortgage. If you have some equity in your home, a
remortgage may be a good alternative to a debt
consolidation loan. It will provide you with cash to pay
off your debts and it will all be rolled into your
mortgage payment, so you only have one monthly
payment to make. If your current lender charges high
interest rates, or is not keen to allow a remortgage,
ask a broker to help you find another lender. You may
well get a better rate. The only problem will be if you
already have mortgage arrears. It will be more
difficult, though not impossible, to find a lender with
favourable rates.
�Bankruptcy. Some people are tempted to consider
bankruptcy because it seems to offer an easier solution
than a debt consolidation loan and apparently allows you
to start again with a clean slate. However, you really
must see this as a last resort. It can affect your
credit rating for years to come and although it is more
common nowadays, it still carries a stigma. If you
really can�t pay off your debts, talk to a financial
adviser or debt counsellor to see whether something less
drastic, such as an IVA (Individual Voluntary
Arrangement), may be more suitable for you.
You may still find a debt consolidation loan is the best
way of managing your difficulties, especially if
remortgaging is not an option for you. It does have
advantages, such as putting you in control, helping you
to budget, and reducing your monthly outgoings. But it
does NOT cancel your debts! And not all loans will be
right for you. Talk to an adviser or a broker to make
sure you find a lender who won�t make you worse off than
you were before.
Article Source:
http://www.articlemap.com
Sean Horton is a Director of
Loans Connection who offer
debt consolidation loans
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