Monthly Archives: August 2013

How to manage debts using loans


It is known fact that in most cases debts and loans go hand in hand, many people have ended up in debts because of loans and this is due to their poor financial management. When you are unsure of the need of money and your need for expenses you end up in getting unnecessary loans and you end up with debts.

If you are finding it difficult to manage your debts, you may consider paying someone to fix the credit problem and make all your loans consolidated into one loan. Before considering refinances your loans you can do the following;

– Consider different options available before your refinance: If you are struggling to do the repayment try to do a rearrangement with your credit provider.

– Changing home loans: It may save money but you should be careful in doing so. Some of the lenders or brokers make commission if you switch loans. They can also make false claims about the money you can save to make you get the new loan.

– Do not Sell your home try mortgage: It may look better to sell your home if you are struggling to repay your mortgage. Instead of selling your home as a mortgagee sale you can sell your home on your own terms and conditions. There is possibility of getting more money after selling the home and that can be used to repay other debts.

You can get free counseling to sort your credit issues and negotiate the debts with your creditors. Check out the loans and debts information in you will get an idea on when, how and from whom to borrow to manage your debts.

If you find that your credit provider is unfair in managing your debts you can also get a free external dispute resolution scheme.

1. Before taking new loan to consolidate your debts, get ensured that your new loan interest rate, fees and costs are much lower than what you are paying for all your debts. If you are ending up in high interest you may lose money making the problem worse.

2. Check the loan term: The longer term loan may make you to pay more interest even the interest rate are shorter.

3. Check whether they are licensed: If you are intending to avail the facility of debt consolidation company check whether they are licensed