UK Household Debt Soars By 42% – Could It Be Time To Manage Yours With a Loan?
UK Household Debt Soars By 42%
If you’re one of the many UK households that has taken out further debt over the end of 2015, you may benefit in 2016 by managing these debts with a loan. Being approved for a loan can help you to pay off your existing debts, and if repaid on time can help retain your credit rating.
Likewise not repaying your loan repayments on time will damage your credit rating, however most people find that having been used to repaying multiple debts, repaying one monthly debt brings light relief as it works out cheaper and therefore is more manageable.
What next? Ways to apply for a loan
When looking to apply for a loan, you need to do some background research, many people believe that this starts with the lender, however its of primary importance to do some research on yourself, by way of finding out your credit worthiness, i.e. what your credit rating actually is. Your credit rating will determine what kind of loans are available to you, the better your credit rating the better loan deal you are likely to receive. Every credit agreement that you have on mortgages, loans, credit cards, mobile phone contracts is stored on your credit file. Ay missed or late payments on these credit agreements are recorded by lenders to compile an overall credit score – this gives future loan companies and lenders an idea of your credit worthiness, and how you behave as a borrower, from this score they can assess how likely you are to repay the debt.
Some lenders will not at all consider lending to those with an average to bad credit rating, therefore should you apply with them without first considering your credit rating, you will be declined, which is also a factor that negatively affects your credit rating. Doing background research on yourself first can help you to determine which lender to apply with that is likely to accept your application.
Once you have an idea of your credit rating, you can then take the next step and seek a lender to approach. Many people utilise the internet search engines to find loans available to them. The search term ‘bad credit loans’ has seen a huge increase over recent years, and although there is no such product as a ‘bad credit loan’ as it is essentially a loan that is approved for those with an average or bad credit rating that comes with higher interest rates – there are many companies on the internet that do consider loan applications from those seeking bad credit loans.
Once you have found the loan company that you wish to apply with, it’s important that you do your own research on them before applying. Reputable loan companies catering for those seeking bad credit loans are often found on review sites, such as the Review centre and Money Saving Expert. Using these websites can help you determine the best loan company to apply with.