HOME LOAN CCJ's
If you have a number of CCJ's (County Court Judgements) to your name you may be forgiven for thinking that you are too deeply en meshed in a record of bad credit to warrant being considered for a loan of any sort.
There are however some lenders who would consider the whole story, weigh up your earning potential if the load was in some way removed, and come up with a plan that would considerably ease the anxiety. You may be paying off debts at a high rate of interest but if borrowing a large sum, enough to remove the burden and leaving you with comfortable payments each month, if that does the trick, then you may find life a lot more bearable.
There is a downside to this plan that must be considered. The loan would obviously be over a longer period and the interest rates would no doubt be higher than normal, but still reasonable, perhaps 6.5% or 7.5%, depending on current rates and if there were any assets to put up as security.
It is extremely important that, having availed himself of this opportunity, the borrower maintains the repayments and avoids getting into difficulties, even if it means changing his lifestyle and spending habits to do so. If the debtor should happen to get into difficulties he may be in danger of bankruptcy and under these circumstances companies called debt consolidation companies may buy the loan from the lender at a discount. This would be serious and so prudence is vital.
The time for this type of loan is right if a large amount is owed against credit cards, which is usual when a would-be borrower has CCJ's, and they carry very large interest rates, even when compared with an unsecured loan from a bank. However a secured loan using a house or a car as collateral is often able to command lower interest rates.
Then the total interest and the total cash flow paid towards the debt is lower, enabling the debt to be paid off sooner, incurring less interest overall. In practice, many people incur large credit card debt because they spend more than their income. If that habit continues they will not benefit from an this type of loan because they will simply increase their credit card balances again.
Because of the theoretical advantage that this type of loan offers a consumer that has high interest debt balances and CCJ's, high fees may be charged by companies taking advantage of this fact and sometimes the fees are close to the maximum allowed. In addition, some unscrupulous companies may wait until clients have backed themselves into a corner and must consolidate in order to pay off bills where they are far behind in paying.
Losing the home can be the result of not keeping up payments so the client may be driven to paying higher fees in order that the loan may go ahead. In some cases the borrower may not have enough time to shop around and may not even be aware of other lenders with lower fees. This practice is known as predatory lending. Charleswold are aware of these practices and will offer their expertise to ensure that they are avoided.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All loans and mortgages are secured on property. Think carefully before securing other debts against your home.
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