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Simple Debt-Free
Advice
'Debt Free' is a status we'd all love to behold but
unfortunately these days very few of us can make such a
claim. But one thing's for sure... if you don't
have a plan to eliminate your debt, you will never be
debt free. Having debt problems is not a nice
situation to be in and the problem will only get worse
if you don't do something about it. From the
moment you start to take action, a weight will be lifted
from your shoulders and being debt free need no longer
be a dream.
The following debt advice is designed to
provide you with the possible route out of your debt
nightmare. Hopefully, one of these options will
start you on your journey to becoming debt free.
Remortgaging
This is nearly always the cheapest solution for those
that have available equity in their property (the market
price minus the outstanding mortgage). However, it's
worth remembering that it is only cheaper in the short
term and may work out to be the most expensive option
over the longer term. Adding another £25,000 to
your mortgage over say, 20 years at 5% interest is
likely to work out more expensive than borrowing the
same amount over 5 years at 10% interest.
Click here for some great
free advice on Re-mortgaging...
Secured Loans
If you wish to eliminate your debts over a shorter
period of time then this is likely the best option,
provided you have an asset to secure the loan against.
The asset may be a car, shares etc. but generally it
would be a property, so if
you default on payments you could lose your chosen
asset. That may not be a risk you wish to take.
Click here for some
great free advice on Secured Loans...
Unsecured Loans
Unlike a secured loan, you would not be required to
offer any assets up as security with an unsecured loan.
It is likely that the interest rates for an unsecured
loan would be steeper than a secured loan and also, if
your credit record is poor you may struggle to get an
unsecured loan.
Click here for some great free advice on Unsecured
Loans...
Savings
This is generally always the best option for getting rid
of your debts and is pretty much a fast-track route to
being debt free. However much you might value the
interest you are receiving on your saving, it unlikely
to be as much as the interest you are paying on your
debts, so it makes financial sense to eliminate the
debts in favour of building a nest egg. If you
have something put aside for a rainy day, consider this
to be a rainy day.
Approach Creditors
It really is nearly always a good idea to talk to your
creditors and let them know that you are struggling to
repay what you owe them. They would rather get the
money back over a longer period of time than not get it
at all. Sometimes this is all it takes to reduce
the burden to a more manageable level.
Debt Counselling
Why not speak to the experts about your situation.
They've probably seen it all before and will know
exactly what you need to do. For impartial advice,
your first stop should be the
Consumer Credit
Counselling Service
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