Loans v Debt management
The reason most people take out a loan, particularly an unsecured loan is because they are looking to consolidate their debts.
They may have over extended themselves by taking out too many payday loans or other borrowings until they reach a point where their income is exceeded by their outgoings – a position that many people in the UK in 2011 can identify with.
A loan will probably be the most suitable option
Now although anytypeofloan.co.uk does specialise in guarantor loans ( a form of unsecured credit) we do realise that taking a loan that gets people into more debt may not be the answer, even if it does reduce their outgoings each month. We encourage everyone to explore all the options before taking on a new credit commitment because once you have signed on the dotted line, you are responsible for that loan until it is fully repaid.
You should have a look at a debt management plan but make sure that you do this with one of the charities that do not charge you for the option, we heard from one client yesterday who was paying £220 a month to a debt management company but only £150 was going to the creditors as £70 was going to the company! Another option (if your debt is completely out of control and you are in danger of losing your property) is an IVA. An IVA is just one step away from bankruptcy so you need to be absolutely certain that this is what you need to do.
Of course, all of the above assumes you just want to reduce your debts – it doesn’t take into account that you may want extra cash to do some home improvements or buy a car as well. A loan with a guarantor (for a definition, please read this article on “what is a guarantor loan“) can help even the most adverse of bad credit borrowers as all checks are made on the guarantor, not the borrower.
So in summary, please check all of your options and make sure that whatever decision you make about your loan or debt requirements, it is the right one for you and your family.
