DEBT CONSOLIDATION
Debt consolidation involves taking out a loan to pay off others.
These loans normally reduce your monthly outgoings as they either
have lower interest rates or are spread across a longer period.
These loans are normally secured against your home.
The benefits of a consolidation loan are –
- They can reduce your day to day commitments.
- They could clear all your debts
If you want to see how a consolidation loan could be an option
for you please see the consolidation loan part of this website or
contact us.
The downsides are
- You could end up with more debt than you started with
The debt will now be secured against your home and if you don’t
pay your home is at risk.
Bankruptcy
If you can’t afford to pay anything towards your debts you
can apply to go bankrupt. By going Bankrupt you can start afresh
and the money you owe can be written off.
However there are many downsides. By going bankrupt you may have
to –
- Pay to go bankrupt.
- Your house will be sold
- Your possessions may be seized and sold
- People can find out if you are bankrupt. For instance a notice
might be put in a newspaper.
- You will find it very hard to get credit in the future
If you've got balances on store and credit cards, unsecured loans or other forms of high-interest credit, you may find it easier to 'consolidate' these with a secured loan or a re mortgage. Use the money you borrow at a lower rate to pay off your existing higher rate borrowing and simplify your repayments into a single more manageable monthly sum, leaving you with money to spare each month.
A Homeowner Loan is designed for homeowners only and allows you to use the value of your property as security for the amount borrowed.
Homeowner Loans are usually between £5,000 and £150,000 and with the option to take a term of up to 25 years repayments can be kept low.
Homeowner Loans can be used for a variety of purposes including home improvements or to consolidate existing loans and credit card bills.
TYPICAL 11.9% APR, VARIABLE. TWO THIRDS OF OUR CUSTOMERS GET THIS RATE OR BETTER.
A re mortgage replaces an existing mortgage on a property and, like the original mortgage it is secured on that property. A re mortgage can enable you to borrow a larger sum than your original mortgage and use the extra money for other purposes. It could also enable you to obtain a better rate.
Bright Finance is authorised and regulated by the Financial Services Authority (FSA) to advise on and arrange mortgages and general insurance.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. When consolidating debts the new loan or re mortgage may have a longer repayment term and therefore increase the total amount payable.
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