Having problems with debt?
Solutions and help for Debt Problems from Shire Direct!
If you're struggling with debt problems, we may have just the solution for you! In an ideal world of course, we'd all have a well-paid secure job, no mortgage and no debts!! In reality though, life doesn't work like that. Most of our finances may be so delicately balanced that it only takes one blip, and our entire budget collapses like a house of cards! But we're happy to tell you that if you are having problems with debt, there are solutions available!
Here at Shire Direct we have the approach, skills and experience to help with financial "blips" - even in the trickiest of circumstances. So if you would like to make a fresh start, a quick call to one of our qualified Advisors will soon put you in the picture as to how best we can assist. We will of course carefully examine your circumstances, needs and aspirations in order that we can come up with the most appropriate solution for your debt problems, just for you! We're confident that you'll find our service to be friendly, professional, helpful and not in the slightest bit stuffy!
So, below we'll take a look at some of the options, solutions and help available from Shire Direct if you are having problems with debt.
Debt Problems - table of contents:
Consolidation of Debt
If you're finding that you've got more going out each month than is coming in, one of the most popular options is for us to discuss with you the merits of combining all your present borrowings into one new mortgage or loan, and by having just one manageable rescheduled payment each month, you can often save literally hundreds of pounds in your outgoings each month! Just think how much easier life would be, and of course it could help prevent your debt problems escalating out of control.
So debt consolidation is the act of combining your existing debt (such as credit and store cards, HP, personal loans, bank loans etc.) and repaying all the outstanding balances with one larger payment. Homeowners often carry out this exercise by raising the funds against the security of their homes, either by arranging a remortgage or a homeowner secured loan.
However, you should bear in mind that by adding existing debt to your mortgage you will increase both the repayment term and the overall cost. This is because although you are raising capital to repay your debt against the security of your home, which will usually be at a cheaper rate of interest than that charged on the accounts you are consolidating, (such as credit and store cards, HP etc); because you are extending the term of your borrowing on the remortgage or homeowner secured loan, inevitably you will repay more interest over the longer term than you would have done had you paid your borrowings over the initial contractual period. Furthermore, you will also be converting unsecured debt into secured borrowing, and therefore you home may be repossessed if you do not keep up repayments on your mortgage or other loan secured on it.
But, if your financial position is such that your outgoings are outstripping your income, then your choices are restricted as to what you can do to remedy the situation.
Alternatives to debt consolidation
Some of the alternatives to debt consolidation as a solution to your debt problems, include:
- Trading down
This involves selling your existing home, and moving to a smaller, less expensive property and repaying your outstanding debt from the proceeds of the sale. By doing so, you will incur a series of costs such as solicitor's fees, estate agent's charges, and removal costs, as well as the upheaval of moving away from your friends and neighbours.
- Negotiating with your creditors
Some lenders may be prepared to discuss reducing your contractual payments, at least for a period until your circumstances improve. However, if alerted to your difficulties, some lenders can be less than sympathetic, and may take more draconian action against you. It's probably always best to seek help from organisation's such as the Citizens Advice Bureau should you wish to pursue this option.
- IVA and other debt programmes
You may find you need the protection of a legal contract to protect you from your creditors, and there are various ways of achieving this, subject as ever to your circumstances. One of the popular methods currently being used is the Individual Voluntary Arrangement (IVA). However, if the equity in your property exceeds the amount of your debt, then your application for an IVA is likely to fail, as you would be expected to remortgage or sell your property in order to raise the funds to clear your indebtedness. If this is the most suitable remedy we will be happy to refer you to a professional Debt Practitioners practice.
- Bankruptcy
In more serious situations, it may be more appropriate to declare yourself bankrupt. If this is the most suitable remedy we will be happy to refer you to a professional Debt Practitioners practice.
Help with Debt Problems from Shire Direct
So, if you are having problems with debt, and difficulties in making ends meet, we would strongly urge you to give one of our Advisors a call. We will carefully examine your circumstances, needs and requirements. Amongst other facets, we'll take into account your income and present outgoings, the extent and type of the credit you have outstanding, the interest charged, and penalties for early settlement. The object of the exercise is to put you in the picture, discuss the options available to you, and provide you with advice and a recommendation on the most suitable solution.
If making a fresh start and finding help for your debt problems sounds appealing to you, please do not hesitate to contact us in confidence. You'll find our approach to be friendly and helpful. Our Freephone lines 08000 282 281 are open until 10.00pm everyday, including weekends, and the call is free and without any obligation. Alternatively you can also enquire online at any time. In either instance, we'll be delighted to assist you and help in any way we can.
That concludes our look at how we can help if you're having problems with debt. Don't forget we're just a free phone call or couple of mouse clicks away, and would love to hear from you, you'll find a warm welcome awaits you!
Mortgages/Remortgages: The overall cost for comparison is 9.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances. For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
Homeowner Loans: Rates from 8.9% APR variable, but typically 13.9% APR variable. Most customers are likely to receive a lower rate or the same rate as our typical variable rate - learn more about APR. Shire Direct also has a range of non-conforming loan plans with rates up to 19.9% APR. These plans are designed to help those who may have a more difficult credit history, including CCJ's and credit arrears, IVA and bankruptcy problems.
A broker fee of between 0% and 10% of the loan advance may be charged for arranging a secured loan.
All loans subject to status and secured on property.
The actual rate available will depend upon your circumstances. Written quotations on request.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
