 |
 |
Debt Questions - Debt Consolidation Northern IrelandWhat is Debt Consolidation?If you have several debts you can consolidate them into one debt by taking out a personal or secured loan, or remortgaging your property. This is called Debt Consolidation. What happens is you take out the new loan to pay off all your other debts and then you only have one debt to pay off which is the new loan, so only one monthly payment. Debt Consolidation is only really suitable for people who have debts up to £5000. For debts over this you would probably need to be thinking about a Debt Management Plan or an IVA. How much can I reduce my monthly payments by in Debt Consolidation?This will depend on how much you are paying at the moment and how long you want to take to repay the loan. But reductions in monthly payments can be as much as 75%. When taking out the loan how much can I borrow?There are a variety of factors which dictate how much you can borrow. Whilst your income and, for secured loans, the equity available in your property are key, the main one is that you can afford to make the monthly repayments. Over what length of time can I spread my repayments?This is entirely up to you and will depend on how much you can afford each month. Most loans are usually available over 3 to 25 years, though some mortgages can be spread over a longer period of time, depending on your individual circumstances. Can I use the loan for more than debt consolidation?Certainly. Consolidating your existing credit allows you to free up money for other things. You can borrow extra for that new car, to pay for your dream holiday or so you can have the new windows or conservatory put in. The choice is yours, as long as you do not over-borrow. What if I have an accident, become ill or get made redundant?Some companies will arrange accident, sickness and unemployment cover if you want the added peace of mind this brings. Life assurance is also advisable. We would strongly advise that you consider very carefully before taking out any cover as it can be very costly to do so as some companies charge too much for this. Can I move house if I want?Absolutely. If your consolidation loan is secured against your house then you can use the proceeds of the sale to pay the oustanding balance of the loan or, where you are moving to another property, you may be able to transfer it to your new home. Contact us and we can provide you with some options that may be suitable for you.
|
|
||||||||
