You must have done ample research, checked, and compared the rates and chosen the best lender who would be providing you with the loan you are looking for. After submitting an application for debt consolidation loan, you are now informed that your loan request has been denied.... ❯❯❯ Debt Relief for Entrepreneurs — How to Pay Off Loans without Compromising Your Company's Success? As a business owner, you are probably aware of the fact that establishing and running a business is quite difficult, if not impossible, without external aid, especially of the financial kind. However, it is paying off that debt that is difficult and often leads to stress, especially for new entrepreneurs. The burden of repayment, irrespective of the circumstances, can be too much to deal with. It... ❯❯❯ Debt consolidation loan and debt relief options that help to reorganize finances The average American in the age group of 18-40 years has become heavily dependent on debts that have now become a way of life for most.
The Most Common Mistakes That Entrepreneurs Make (And What To Do Instead) Do you want to achieve success as an entrepreneur? Then make sure you avoid these common mistakes. It is every entrepreneur's dream — to make it big. However, having a humming business that generates a healthy profit takes a lot of hard work and dedication. If you're not careful, you might find yourself making a mistake that can lead to the death of your dream. Fortunately, knowing... ❯❯❯ Ten Guidelines for the First Time Home Buyers Nothing beats the buying of your first home, right? But, we can all agree how demanding and nerve-wracking can be as well. So, if want to start the exciting journey into home ownership, you are in the right place. The following ten tips will definitely help you to get started. 1. Make a clear list It is time to create your wish list. Before beginning to look at new houses or flats, it is crucial... ❯❯❯ What Should You Do When Your Debt Consolidation Loan Application Is Declined After analyzing all your finances, and evaluating your debts, you seemed to have ultimately opted for debt consolidation.
If you live in Scotland, the solutions are different, please visit Scottish Debt Solutions. How has Debt Consolidation helped others? This is a real life story from Bob a customer who was able to avoid bankruptcy and clear his revenue debts with funds raised by a secured loan: "I had ignored my financial affairs, had significant tax debts and was facing possible bankruptcy. The Revenue were owed £43, 650 which related to VAT and self assessment tax and penalties for a period from March 2009 to April 2015. The TDA team asked HMR & C to hold action for 3 weeks to allow me to look into my options. TDA referred me to who were able to help me very quickly secure enough funding through a secured loan to clear my revenue debts. Bankruptcy would have meant I lost all my equity in my property of £170, 000. I also had an interest in an investment property which I was able to protect. I learnt a valuable lesson and now am up to date with my tax. " Debt Consolidation – When does it make sense and what are the risks?
Home Loans 4 Best Debt Consolidation Options Advertiser Disclosure Getty Images We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. Juggling debts from multiple sources can make your finances feel like the world's largest jigsaw puzzle. Debt consolidation can help organize those debts and monthly payments into something much more manageable. By streamlining your debts from different credit cards or loan lenders into one, consolidated payment — especially if you score a lower interest rate in the process — you can jumpstart your debt payoff success. You should be strategic about how you implement consolidation into your repayment plan, though. Choose a consolidation option that works with your credit score, fits your timeline and goals, and will help you establish long-lasting healthy financial habits. Choosing the Right Time to Consolidate Before you decide on a consolidation method, make sure you're in the right stage of your debt payoff journey to best take advantage of the benefits.
What is Debt Consolidation Debt consolidation generally means clearing your unsecured debts using funds raised by secured or unsecured loans, remortgaging your property or perhaps using equity release. The debts could include credit cards, loans, council tax or utility arrears or debts due to HMR & C. Debt consolidation is only recommended if the monies raised will clear your debts, the repayments are affordable and will leave you in a better position financially. Is Debt Consolidation suitable for me? Debt consolidation is appropriate in the right circumstances. We are able to offer advice on all available and appropriate solutions including consolidating your debts with new advances. For example, it may be possible to raise a sum of money and offer this sum to creditors as a discounted settlement. Our case studies include examples of how we have been able to help our clients settle their debts at a discount. Our team will provide debt advice and properly assess your circumstances and if consolidating your debts with a new loan is right for you.
Home Equity If you're a homeowner, you may be able to use your home's equity — what the home is worth minus what you owe — as a consolidation tool, through a home equity loan or home equity line of credit (HELOC). With a home equity loan, you can take out a lump sum, use it to pay off your high-interest debts, then pay the loan back in standard monthly installments. A home equity line of credit acts more like a credit card; you can borrow against the credit line as needed to pay off your other debts, then pay the HELOC back over time. Like other consolidation methods, the best reason to consolidate through home equity is to score a lower interest rate (loans may be fixed, while HELOCs are often variable). Secured loans like these can also be more viable options for homeowners without great credit, as other consolidation methods usually require a good credit history. But a home equity loan or HELOC can be risky. Because these are secured loans, using your home as collateral, you could risk foreclosure if you fail to pay.
There are a range of lenders who offer remortgages to for debt consolidation, so it is good to shop around. You need to carefully consider whether you can afford the new mortgage repayments. Please use our debt calculator to review your income and expenditure, or call our advisors for more debt advice and help with consolidation Equity Release/Lifetime Mortgage Increasing numbers of mature people are finding themselves with unaffordable debt levels. If you have a property with a low level mortgage or perhaps no mortgage, it is possible to raise money on your property to help out with your finances. These are long term loans that are secured on your property and usually paid back when you eventually sell your property. There are a range of equity release products some of which involve paying off the interest with others that do not involve any monthly payment but where the interest is rolled up and paid off when the property is sold. We strongly advise you get proper debt advice before agreeing to take out an equity release loan.
These loans can carry expensive repayment penalties and generally the loans that do not require monthly payment will end up seriously increasing the amount you owe on your property. If you are elderly and struggling with debt, please do speak to our advisory team. It is possible to propose IVA's and debt management plans that will allow you to hold onto the equity in your property. Unsecured Loans Consolidating your debt through an unsecured loan is preferable to a loan that is secured on your property. Unsecured loans almost always require good to excellent credit rating and the interest charges are generally much higher especially if you have impaired credit. If you are already behind with repayments or owe a large amount of money then an unsecured loan will generally not be a suitable solution. The amount that can be borrowed is also generally not enough to pay off creditors in full. Unsecured loans are usually repaid over a period of 6 years or less. There are other solutions including IVA's, Debt Relief Orders, Bankruptcy and Dealing Directly with your Creditors which may be appropriate.
And since home equity loans are based on the value of your home, you could also risk owing more if your home value drops. Debt Management Plan If other consolidation options aren't working, or you're really in over your head with debt balances, look into working with a nonprofit credit counselor on a debt management plan. These plans are designed to consolidate and reduce your monthly payments — whether your debts come from credit cards, personal loans, or even collections debts. Always seek out credible, nonprofit credit counseling agencies such as those endorsed by the National Foundation for Credit Counseling. Credit counselors can help negotiate the terms of your debt, lowering your interest rate and reducing your minimum monthly payments, often based on your discretionary income and the payments you're able to make each month. This might be an especially helpful option if you want to start paying down debt but you're facing a period of financial hardship. "When you're on a debt management program, you have this monthly payment and you know that the debt's going to be paid off in this amount of time, " Bossler says.
Debts are increasing at an alarming pace for US consumers thereby exposing them to high financial risks. However, debts are not bad, as long as you can handle it responsibly and use the money for attaining certain goals in life like buying a house,... ❯❯❯ Debt consolidation loan is the turnkey solution to all your debt problems When faced with a debt problem that has gone out of control, you may want to consider a debt consolidation loan to get you out of the situation. If you qualify for such loans, then you can then it will take care of all your current debts like mortgage, credit cards, business loans and virtually any other loan of debt that you are in now. Some of the debts might get paid off on the spot, and you... ❯❯❯ 10 Reasons Why You Should Consider Debt Consolidation for Your Business Loans Not all loans are an excellent fit when looking to consolidate your business debt. For example, most short term business loans get consolidated or refinanced themselves. Such loans are more costly when you keep them for a long period of time and should always be paid off within 12 months.