The simplest way to describe debt consolidation is taking out one loan to pay off a number of other debts. Imagine, for example, that you have several credit cards and they are all in the red. You also have some medical bills that you have not cleared and there are car payments pending. All these debts can be back-breaking; in fact, they can force you to declare bankruptcy. Fortunately, so long as you have a mortgage you can re-mortgage and then use the funds to consolidate your debts.
Remortgages present two distinct benefits; first, you get a chance to change the terms on your mortgage so that you can pay affordable amounts with reasonable interest rates. The second thing that happens is that you get a good amount of money that you can use to pay off your debt. You don’t want to go to every lender and pay them what you owe – you want to pay but save some money in the process and that is where debt consolidation comes in. You will need the services of a company like Mortgage Advice Services, the best Nottingham re-mortgage advice company, to help you come up with the remortgage progress and a consolidation plan.
A consolidation plan is a plan that lists all your debtors, what you can pay them and when. The schedules and amounts will be based on how much money you got from the loan but they will also be favorable to you. This way, you can pay the lenders and get them off your back while at the same time keeping some of the money from the remortgage to invest in a new project or even take a holiday.
Your consultant from Mortgage Advice Services will approach every lender on your list and show them the terms. Most lenders are happy to agree to consolidation terms because it means they get payments (where it could easily have been a default). Once every lender signs off you can go ahead and start paying them every month. Remember, you have to pay according to schedule if you want your credit rating to improve.
It is best to retain the services of Mortgage Advice Services even after they have helped consolidate your debt. They can help you manage your finances so that you don’t have to go into debt again. They will help you with all major financial transactions so that you can make the right decisions every time. You can find out more on http://mortgageadviceservices.com/Labels: benefits of re-mortgaging, debt consolidation, re-mortgage advice, re-mortgage rates, re-mortgaging fees, the re-mortgage process
