People
often find that they have taken on far too many debts, and at
some point they will come to realize that the time has now come
to do something about all the various credit card debts, personal
loans
, etc.
It is
only too easy to become embroiled in a mass of loans, credit
cards etc., as the advertising men put so many goodies in
front of us on a daily basis.
When we
are children on our way to school, the advertising posters
shout out at us about the latest designer clothes, games,
etc. that we feel we simply must have., and how much better
life would be if we owned such a computer, games console,
etc.
As soon
as we are home from school at the end of the day, we nag our
parents to buy these objects for us.
We always,
even from an early age, like to have as good or even better
toys, games and clothes as our friends, and we never consider
for a split second that our family are less well off than
theirs.
This is
the training ground for our future financial life, when we
want, want and want, without taking in the fact that we possibly
cannot afford to buy all the things that we want.
Often
when we go to university or college, we meet friends who are
much more well heeled than us, but we stupidly try to do everything
and go everywhere that they do.
They go
to the South of France every May to spend a fortnight, enjoying
all the beaches, expensive restaurants and night clubs that
are more interesting at that time of year than at almost any
other, as the famous Cannes Film Festival takes place in May.
Sitting
drinking an Armagnac one evening in a bar on the beach, you
catch sight of your favourite actor.
Your friends
ski in St. Moritz at Christmas,and so you do too.
When you
start work, the spending trend continues, as it does after
you marry and buy a home which you furnish in the best
The credit
card balances mount up until you find that they are difficult
to handle, and it is now at last that you decide to seek debt
advice.
As you
bought your property some years ago now, you should have equity
in the property that you can use to sort out the indebted
situation you find yourself in after years of reckless over
spending.
If your
property is valued at say 300,000, and your mortgage balance
is 150,000, the equity would be the difference between the
two, namely 150,000
You can
use some of the equity to raise funds by a remortgage or a
secured loan to arrange debt consolidation which will leave
one low repayment in place of the numerous credit cards, etc.
The maximum
value of secured loans is 100,000, but larger loans may be
available from some homeowner loan lenders.
You can
obtain a remortgage at a maximum 90% LTV.
Remortgage
rates start from.84% currently and secured loans have rates
starting at from 9% which can obviously save a great deal
of money when used as debt consolidation loans that pay off
expensive credit cards at up to 40% APR.
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