Hot Topics

What is a Home improvement Loan?
Many people choose to take out home improvement loans so they can give their house a new look before selling.
Will my monthly repayments ever change?
It depends on whether your loan is a fixed or variable interest rate loan, and over what period of time you are taking the loan.
Can I defer payment?
This depends entirely on the specific agreement you have made with the loan company – and you must read your terms and conditions carefully to see if you are entitled to defer your payments at any point.
What if I want to move house during the term of my loan?
Moving house is only an issue if you have a secured loan – as you have borrowed against the value of your house. How your loan company deals with this varies greatly. Some allow you to transfer your loan to your new property, using your
I am having trouble making repayments on my loans, should I get a debt consolidation loan?
If you have a number of debts and are having trouble managing them all, then a debt consolidation loan may be your only option.

Will a debt consolidation loan solve all my problems?

A debt consolidation loan will solve your problems if you can meet the repayments. However you need to analyse how the money troubles began - and fix the root cause.

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Here’s a typical scenario: you’ve got into debt trouble because you are living beyond your means and are supporting your spending habits with credit cards. A debt consolidation loan seems to solve things by paying off the debts, however if you continue to spend beyond your means, you may find in another year or two you have run the credit cards up to the same levels or higher than they were before the debt consolidation loan. This time there is no way out - the equity on your house has all been used up by the debt consolidation loan, and you cannot pay either the new bills or the loan repayments. Bankruptcy and the loss of your home is the inevitable conclusion.

The way to avoid this scenario is to cut up your credit cards. If you need to pay by card for business trips or on-line purchases - consider secured credit cards or debit cards. Spending with a secured credit card means that you will not be able to exceed a limit based on the value of an accompanying savings account. You could also use a debit card as you have to have money in the account in order to use the card.

It is very important you treat a debt consolidation as a last resort - and that you are aware of how important it is that you keep up the repayments.

 

Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.