Unsecured Loans
Merits:
An unsecured personal loan is potentially useful if you are paying over the odds for an existing personal loan, credit card, storecard, bank overdraft or other form of credit. By selecting the right lender using this solution can relieve a debt problem.
Advantages
- No negative influence on your credit rating.
- Quick to organise with money being received within 48 hours.
- Ability to get the lender to send payments directly to credit card companies and loan providers if you wish.
- Can save significant monthly amounts if you select the right lender.
- Can be taken in joint names.
- Stops existing lenders chasing you for payments.
- Reduces the overall administration you have to undertake by dealing with only one lender.
- Property not at risk as loan is unsecured.
Disadvantages
- May not save a lot if you can't access the low cost lenders.
- An obligation to pay a new lender will exist for the term of the loan.
- Whist the loan is unsecured if you default some lenders to use charging orders.
Where unsecured personal debts are significant a number of lenders will push for and obtain a charging order. This translates unsecured debts into secured debts. Where this occurs it is also the case that your unsecured debts can jeopardize your home. Also where debts are greater than £750 a lender can pursue a bankruptcy claim. Where this occurs it will again force the sale of a property.
Use our FREE Credit Report to see if Remortgage is the right solution for you.
Unsecured loans: Main
Unsecured loans: Criteria
Unsecured loans: Considerations
Unsecured loans: Costs
Unsecured loans: Merits