This is as good a time as any and in fact a better time than most, to take advantage of the low rate remortgages and secured loans on offer at the moment to tidy up your finances.
At the same time, arranging a rearrangement of your outgoings and money, can free up additional funds to enable you to buy or do other things.
Most people have a number of credit cards, and these cards are expensive which make them far from the best way to make a purchase.
Sometimes a credit card can be handy, and in fact essential, if buying goods on the internet, as some people selling on the internet do not accept payment by Paypal
Therefore, having one credit card can make financial sense, but there is seldom any requisite for two, three or even more cards.
Another bad feature of credit cards is that many people do not really appreciate just how much they are spending when paying by credit card.
If buying goods at say 500, it would seem to be a fair amount of money if 500 in cash was handed over.
However when it is only a matter of handing over a piece of plastic and signing your name, the full sum actually being spent does not appear to register in the same way.
Interest rates for credit cards are seldom less than 20%, and can be as high as 40%, and they take for evet to clear if only the minimum payment of 3% of the balance is made monthly.
A simple solution to credit card and other debts is to organize debt consolidation, which will clear off all the other debts and leave one payment in their place.
Debt consolidation loans are not readily available to tenants, especially as they are normally quite large loans when used to pay off a number of debts.
However, homeowners are in a perfct position to arrange debt consolidation, and they have a choice of two main methods and these are secured loans or remortgages.
Only homeowners are eligible for a secured loan or a remortgage as they are both homeowner loans secured on a property.
When remortging for debt consolidation, the new mortgage will need to be for a higher amount that clears off the mortgage with the current provider and leaves enough to clear all the debts.
If a mortgage stands at 180,000 and there is a bank loan of 12,000, credit cards with balances of 30,000 and a car loan of 10,000 the remortgage would be 232,000.
With secured loans, the existing mortgage stays in place and the homeowner loan is a stand alone loan.
For homeowners tied in with their mortgage deal, a secured loan would be the better option.
Author Resource:
Champion Finance are in the business of providing secured loans and whole of the market mortgages and remortgages. When you want a free no obligation quotation for a remortgage, secured loan or mortgage look no further than Champion Finance who have been established since 1985. They also offer debt advice, debt management, debt consolidation and all other debt solutions.
![[Valid RSS feed]](http://www.articlecoop.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
