Debt Consolidation Can Often Be The Best Debt Solution.
Off and on in the course of a lifetime most people do have a brush with debt unless they are one of the lucky ones.
The situation really has come home to roost due to the recession adversely affecting salaries.
Many house holds have seen their income decrease due to for example working shorter hours each week as their employers have introduced cut backs in an attempt to continue trading.
The even less fortunate have found themselves unemployed and are now in receipt of state benefits.
Some industries have been more badly affected than others with the banking and construction industries particularly badly affected.
The reckless lending of banks and building societies has lead to many of their own workers being thrown onto the scrap heap of redundancy and many might say that they have had their just rewards.
However the fat cats at the helm are mainly still in employment inspite of the fact that they are the ones responsible for the advent of the credit crisis.
These bankers were prepared to advance loans both to companies and to private individuals that they could never realistically repay.
The fat cats were only interested in receiving big bonuses for themselves by increasing the turn over of the bank employing them and that was their only selfish concern.They cared little for the clients.
When the bubble burst there was a huge bang that permeated thoughout society, and the incomes of many UK citizens crashed as did the banks.
Credit card and loans debts became a problem. which were impossible to repay due to a cut in income.
The burden of debt is a terrible problem that wears the person in debt down causing not only mental stress but also affects physical health and spiritual well being.
For those in debt, mainly due to simply having too many debts that amount to a considerable sum of money, the only way to achieve any peace of mind is by debt consolidation.
Debt consolidation as the name implies is the combining of all the numerous pieces of debt into one making financial outgoings easier to manage and saving money.
For homeowners with equity on their property debt consolidation can be implemented by means of a consolidation loan.
Consolidation loans start at an interest rate of around 9% at the moment and compared to the interest rates charged for credit cards, it is apparent how great the savings can be.
Consolidation loans are only available to homeowners who have a fairly good credit rating.
For non homeowners and homeowners with poor credit ratings it is essential to obtain the correct debt advice to solve their debt problems.
A possible debt solution could be by means of debt management which is available to both tenants and homeowners.
This is best arranged through a debt management practitioner as the ceditors will consider it more likely that the debt management applicant will adhere better to the repayment plan than if the debtor arranged the plan himself.
Many are afraid to own up to the fact that they do have debt problems and choose to ignore them. This is foolish as debt will not simply disappear and debt help is available to offer a solution to those in debt.
About the Author
Champion Finance, having been established for over twenty five years are experts in the field of all forms of homoenwer loans. They also offer a complete service in mortgages and remortgages from all mortgage lenders. Debt help and debt advice for all circumstances arranged including debt consolidation and debt management plans.
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