Getting into debt at Christmas is very easily done. Many shops and credit card companies will target you with special offers that are just too good to miss. The trouble is, the monthly payments can really add up, particularly when you're already juggling payments for other loans or commitments, not to mention your daily living costs and household bills. Year after year this may even get worse, and you might fall behind on payments, get into arrears, credit problems, miss mortgage payments, CCJ's, defaults, or worse - bankruptcy.
The high rates charged on store cards and credit cards mean it is one of the most expensive ways to borrow money. It actually costs you more to pay it back. Does anyone consider the APR quoted in the small print$%: Not at first perhaps: At the time it makes sense - particularly at Christmas when you want to look after the family and have a well earned break.
It might not seem harmful to open that store card as you wait at the till, or to go for that interest free credit card, but as time passes these debts mean that more of your monthly income has to go on repayments before you even see any of it! This means that come next year, you might not have paid off last Christmas so you take out another credit card....then a vicious circle is created.
Number of reportsThis is where your property might be able to help you out. A home loan or mortgage is one of the cheapest ways to borrow money, so you can pay back what you owe and it will cost you less.
Because the rate of inflation for housing is increasing faster than the general rate of inflation, it means your home may well have equity since you last took out a mortgage. Unlocking this cash in your home means you could repay your debts whilst paying back less each month, because the rate is cheaper.
Taking this option means you will have fewer payments and companies to organise. This frees up your time and takes the worry away. There are thousands of mortgage companies today that are happy to lend to people that have got into some financial difficulty, fallen behind or who need a longer term to spread their payments. There are many options for every circumstance, and with so many competitors, you can get the best rate possible.
Brokers and intermediaries are increasingly using larger panels of lenders, meaning they can do the hard work for you to make sure you get the money you want, at a low cost to you. The application process is easy and you receive advice that is personal to your own situation and needs.