Debt consolidation is one of the ‘buzz’ phrases in the financial sector. Designed to help bringing spiralling debt back under control, debt consolidation loans work by using one sizeable loan to repay a number of smaller debts to leave one manageable monthly repayment.
Whilst there can be no doubt regarding the effectiveness of these loans, simply taking out a loan is not enough to ensure that your financial problems can be left behind you.
There is still some hard work ahead to ensure that your finances remain under control and avoiding these 5 common mistakes will allow you to take some big steps in the right direction.
It аlmοѕt goes without saying nowadays, thаt іn thе financial world thеrе аrе few things more іmрοrtаnt thаt уουr personal credit rating.
Wе need tο dο аll thаt wе саn tο ensure thаt іt reaches іtѕ highest possible level аnd whеn іt gets thеrе, wе need tο dο аll thаt wе саn tο mаkе sure thаt іt stays thеrе.
It is little surprise that with so much pressure associated with mounting debt, a growing number of people are now facing serious levels of related depression or anxiousness.
Depression can impact every aspect of our life and it is therefore essential to approach finance problems head-on to ensure that these problems do not begin to spiral out of control.
As a loan product, guarantor loans have established a firm foothold at the head of the market for borrowers who have been turned down by mainstream lenders.
Despite their huge increase in popularity and prominence in the ‘bad credit’ loan market, there is still a widespread gap in knowledge regarding how they actually work.
With over 400,000 adverts broadcast on network television during 2013, we strongly believe that last year was the year of the ‘bad credit loan’.
With a wide variety of loans available, some, including payday loans, have received a lot of bad publicity, however others, such as guarantor loans, are rapidly gaining credibility with borrowers throughout the UK.
Banks are choosier now than they ever have been regarding who they are prepared to lend to. Whereas just a few years ago, lenders were seemingly falling over each other to offer great deals to their customers, possession of a bad credit rating, or even no credit rating at all, is often enough to ensure that the bank’s ‘computer says no!’
The reasons are nearly always immaterial, it does not matter if you had the stuffing knocked from your credit rating due to financial problems, or if you still live at home with your parents and have not had the opportunity to establish a credit history, anything less than a perfect credit rating will ensure that banks view you as a high risk borrower.
The problems associated with becoming trapped in the ‘payday loan cycle’ are well documented. Rather than stating the obvious about what happens when the situation becomes out of control, information of far greater use would be advice relating to how to remove yourself from the situation or even better, avoid entering it altogether.
Without doubt, escalating payday loan debt is a serious matter and all too often people believe the only way out is to repay one payday loan with another. This is never the correct option because all this will succeed in doing is prolonging the agony, it is therefore far more important to identify a method of nipping this problem in the bud.