Not yet registered? Create a OverBlog!

Create my blog

A guide to debt elimination in the UK

Many UK consumers struggle with debt elimination. Interest rates are higher and higher and penalties are piling up every month, increasing the debt we carry every single day. Many struggle to find a solution to get rid of debt. The solution is getting a consolidation loan that will pay off your current debt leaving you with affordable monthly payments. This article provides you with a guide to debt elimination in the UK.

Types of debt

Before seeking proper debt elimination help, you must understand what type of debt you are in and whether you need a debt reduction or debt elimination. Credit debt elimination and credit card debt elimination are the most encountered type of debts. Credit debts are usually vehicle loans or mortgages. Another type of debt is that which accumulates by not paying bills on time.

Where to go

Consolidation loan Debt elimination is actually done through a consolidation loan. A consolidation loan is completely covering your debt so that no interest or penalties gather up. It is called debt elimination because you use the loan to pay off a major portion of your bills, leaving you with a smaller monthly output to your debts. You are no longer on the verge of having the debt collectors at your door, but you are simply getting a loan that you can actually afford to pay back on time. Here are some of the financial institutions that you can check for consolidation loans: · Credit card debt consolidation companies · Banks · Credit unions · Building societies · Online financial institutions

What to do

This is probably the most difficult step because you are not really sure what to do. These are some of the steps that you can take in order to eliminate your debt: · Check online for debt elimination programs and compare the offers using the online calculators. · Get in touch with companies specialised in debt counselling services. · Go to the bank that you are indebted to and try to reschedule your payments or change the terms of your contract so that you can pay on time.

A piece of advice

Financial institutions are eager to offer solutions when you are looking for a way out of debt. But some companies offer alternatives that will bury you even more in debt. Here are some guidelines to help you make an informed decision: · No matter how desperate you are, never go to a high-interest financial institution for a consolidation loan. They are high interest short-term loans that will provide only short-term solutions and will eventually worsen your debt and not eliminate it. · Always read the fine print before signing anything. The trickiest information is often placed in fine print.

Same category articles Banking

How to get good credit

How to get good credit

A good credit history increases the likelihood of getting approval for the best loan, credit card or mortgage deal. Prior to submitting your application, it's important to take steps to improve your credit rating so that you qualify for the lowest rate of interest. Here's some advice and tips on how to improve your credit score.
How to open a Roth IRA?

How to open a Roth IRA?

This article helps you to find out if you are eligible for a Roth IRA account and if you are, it guides towards the selection of your provider. Finally, you can learn more about the fees associated with opening an account.
New bankruptcy rules under the 2005 code

New bankruptcy rules under the 2005 code

Bankruptcy has been around for many years, and it has helped many people and their families start over fresh financially. Bankruptcy can make a bad financial situation turn into a learning experience, and help people try and not make the same mistake twice and avoid getting into debt again. Now, with a few bankruptcy rule changes, hopefully it will help more families become financially responsible.
How to get a low cost loan in the U.K.

How to get a low cost loan in the U.K.

Cheap loans in the U.K. are only offered to people who have proved themselves to be good customers and reliable payers. You are going to need a good credit history and the ability to comfortably afford to make the repayments. The criteria for a low APR loan have been tightened, but there are things you can do done to get approval.