Is A Consolidation Loan Preferable To A Remortgage?

June 25, 2009 - PRLog -- If you find yourself really juggling with your finances every month, and fear you may start missing payments on your credit cards, personal loan payments etc.
If you are making your repayments a few days late already, and you realize that you really need to cut down what you pay out monthly,  you need to take action.
If you are a non homeowner you are in  very awkward situation as it is very difficult to be granted a consolidation loan and ,of course the other alternative to enable you to save money monthly, namely a remortgage, is not available unless you own your own home. A remortgage is a type of secured loan which means it must be secured on property.

If you are a homeowner you will have to decide if a remortgage or a consolidation loan is best for you.
If you are considering consolidation,either by arranging a consolidation loan or a remortgage, the best starting point is to look out all your credit card statements, loan agreements, etc. to  add up the balances on them to ascertain how much of a consolidation is necessary. If you decide to go down the consolidation loan route and the balances of your debts amounts to £65,000 , you arrange a consolidation loan for that amount. You leave your existing mortgage in place, and take out a  consolidation loan to replace the numerous personal loans, credit cards, etc which make up the £65,000.

If you go down the remortgage route you pay off your existing mortgage as well as your other debts, and if your present mortgage is £120,000 you would need to take out a remortgage of £185,000. Whatever route you decide to take, the granting of either the consolidation loan or remortgage depends of course on status, income and equity,

You are best to consult an expert who deals with the arranging of consolidation loans and remortgages who will help you decide which is beter for you.

http://www.championfinance.com

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Champion Finance is a specialist remortgage and homeowner loan broker, established since 1985. We are independent and arrange all our loans and remortgages from the whole of the market.. We also arrange debt management plans. IVA's and Trust Deeds. We have plans for all purposes and all circumstances.We are always delighted to give a no obligation quote.

http://www.championfinance.com