It’s no secret that the results of the pandemic and the more recent cost of living crisis have left many of us seeking alternative ways to afford the essentials, and for a lot of us that has meant extending overdraft facilities, obtaining credit cards and securing store credit options. But these multiple debts can mount in interest and become difficult to juggle, so what then?
There are many options when it comes to rectifying debts, all best discussed with a qualified adviser, but we’ve focused on secured loans as a means to consolidate your debts here. How could a secured loan work for you?
What is a secured loan?
A secured loan is used to pay off the existing debts and leave you with just the secured loan to repay, meaning all of your individual debt repayments will simplify into one single debt that can make it easier to keep track of debts and its easier to make repayments when managing cashflow.
What are the benefits of this form of debt consolidation?
- Debt consolidation may also allow you to take advantage of lower interest rates, by switching higher interest loans into one lower rate loan.
- If you find organising and remembering to make multiple payments confusing, this can help streamline the process, as you’ll only have one payment to manage.
- Having an easily-manageable payment can help you safeguard your credit score, as you may minimise your chances of missing a repayment.
- Having a single payment can help you budget, as you’ll know exactly how much you’re paying back every month.
- A home owner loan (also known as a secured loan) is borrowed against your home, so you may still be able to borrow if your credit rating isn’t perfect.
- Can help you improve credit scores by maintaining regular payments.
- Home owner loans can last for ten years or longer. A long repayment period allows you to spread out the monthly payments.
As always, we suggest speaking to a qualified adviser to discuss whether a secured loan would be suitable for your needs, we can look towards other suitable options too and work together to help you and your finances.
Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
Related News
Funds To Help The Cost Of Living
While the cost-of-living crisis rages on, many of us are looking at ways we can tighten our belts, even with that new measures being put in place by Liz Truss earlier this month.
6 Reasons You Need Life Insurance
If you’re looking into Life Insurance but are still on the fence whether to go ahead, check out these 6 key reasons why you might consider securing the cover for yourself and your family.
Review Your Outgoings And Save Money
It is surprising the money you can save if you review and replace your current financial obligations. Spend a day reviewing your current outgoings and shop around or speak to a financial adviser like ourselves to see if we can help you obtain comprehensive but more cost-effective cover- (it can take some time but can be worth it in the savings you could make!)
Bills What To Do If You Are Struggling
Many of us could still be struggling with that upsurge in costs so what can you do if they’re just unmanageable? Check out our top ten tips on what to do if you’re struggling to afford your energy bills.
Make your Lenders Want You!
We’ve assembled a few top tips to help give you real curb appeal when it comes to presenting your application to the lender.
Claim Tax For Working From Home?
You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week.
Property At Risk Of Floods?
the long periods of dry weather followed by a period of rainfall can cause flooding and when it comes to the significant increase in rainfall during the winter months flooding can be even more prevalent causing significant property damage.
Using Equity Release To Gift Funds
Recent research conducted by Later Life Lender more2life, revealed the true extent to which gifting via Equity Release can benefit fund recipients.
The Current Climate And Credit Score
As we continue to battle the cost-of-living crisis, it’s easy to see the solutions damaging our credit file, impacting our future finances as well as hitting us in the pocket today.
3 Considerations About Medical Insurance
Even with private health insurance, you'll still use the NHS for services such as your GP or A&E. Equally, if you get a serious illness, you won't necessarily receive treatment more quickly by being covered by a health insurance policy than you would under the NHS.