Worrying over the debts won't help you. You should rather fight out this adverse situation with conviction and a right approach. Debt management can solve your problem. Some of the most popular ways to avoid being declared a bankrupt is to get an administration order from the court, consolidate your debts, or make an individual voluntary arrangement. An administration order is issued by a court and it allows you to make a single payment every month to the court. The court, after deducting an administration fee, divides this money between your creditors. However, administration order can be taken only when your debts are less than ?5,000. This limits your options if you have more debts.
Debt consolidation loans, on the other hand, do not pose such a restriction as in the case of an administration order. There are many lenders in the UK who may give you up to ?250,000 if you are ready to pledge your home. Debt consolidation loans can be unsecured also. In that case, you can get up to ?25,000 only. That too depends on your monthly income and repayment capability. If a debt consolidation loan is sanctioned, you can repay your existing lenders. It will convert all your debts into one single debt, requiring a single repayment per month.
It is a relief when you are deep down in debts and your lenders are asking you to repay their money. However, it is important to note that debt consolidation loans provide you a temporary relief only so that you can repay your existing lenders. The overall outstanding debt remains the same as earlier. Debt consolidation loans provide you an opportunity to recover by lowering your monthly outgoings. You can extend the repayment period, thereby bringing down your monthly repayments. In the meantime, you can get time to recover financially. These loans provide you a much needed breather.
Debt Consolidation Loans
