Many loan options for people with poor credit ratings, such as Pay Day Loans, are extremely expensive and debt can soon spiral out of control.
In this article we explore insolvency and guarantor loan options for spiralling debts.
Whether you have a moderate amount of debt or a sizable sum, the constant strain and worrying about monthly outgoings can quickly make life a misery.
It is human nature to shy away from unpleasant issues and just hope the problems go away, though with debt this rarely happens and usually things just get worse.
It is therefore important to investigate the options as soon as possible, front your debt issues head on, and take action to you get on the path of working out a way out of debt.
Potential Routes Out of Debt
There are many options for people with debt issues in the UK
2. IVA (Individual Voluntary Arrangement)
3. Debt Management
Bankruptcy, IVA’s and debt management plans are all insolvency solutions that involve you coming to arrangement with your creditors where generally, you pay back less than the money you owe.
The problem with the insolvency route though is that they can greatly extent the time of a bad credit rating.
For example IVA’s typically last 5 years, and then it takes a further 6 years before this poor credit history is erased your credit file; so this means a poor credit history for 11 years!
So if for example you have an ambition to get a mortgage and own your own home, this would be severely delayed by following the insolvency route.
Guarantor Loan Option
If you have high monthly payments with Pay Day loans or credit cards, a Guarantor loan may be the right option for you as the lower interest rates may mean affordable monthly payments.
Simply you would take out a guarantor loan to pay off you Pay Day loans and credit cards, this is sometimes called loan consolidation.
So if you consolidate all your high interest loans into one affordable guarantor loan, then from the day you start making these payments you are repairing your credit file.
The Insolvency Route
Guarantor Loans are not suitable for everyone, for if you are unable to afford the Guarantor Loan monthly payments or do not have a Guarantor to support your loan; then unfortunately one of the insolvency options may be the best route for you.
Though do not despair; as the insolvency laws in the UK are very fair and generally a plan will be worked out that will allow you to live to a reasonable standard, and best of all you may not have to pay back all the money you owed.
Though these should not be seen an easy route out and to find out more details please call Debt Line on 01202 629387.
Take Action Today
Debts do not go away, so the best way to deal with your debts is to start taking action today:
1. Calculate your total debt to high interest lenders, such as payday loans and credit cards
2. Calculate how much this debt is costing you every month
3. Find out from Solution Loans how much a Guarantor loan (http://www.solution-
We also recommend you discuss debt issues with Debt Line on 01202 629387 for they will be able to discuss with you the best options for you.
The best way to feel awful and miserable about your debts is to do nothing!
The best way to immediately feel better and like you are taking charge, is to take charge and start finding out your options TODAY.