debt management

[donna36]

I need advice on several different loans. I owe an estimated 30000-35000 in debts my mortgage is included in the amount. I have reasonable bad credit and would like to pay the debts on my credit apps. I dont know which plan to do home equity(very little I would bet) debt consolidation or a second mortgae. my home and property only value at 45000. please what would be my best option

[Tinkerbell1]

First try speaking to your bank and or existing mortgage lender to see what options they have to offer. They are used to dealing with people in yr situation so don't be apprehensive of this. They are best placed to assess yr overall financial situation. Dont keep on worrying and then try to find a solution yrself. This often leads to bigger problems. So act tomorrow!  Good Luck

[philandlil]

i agree with tinkerbell, banks will charge a lower interest on loans my friend got a really good deal with the hsbc when she was in a similar situation to you. don't try debt consolidation companies off the tv because you'll end up paying too much back. if you're still not sure what to do go to the citizens advice bureau they'll help find the best solution to your problem.

[LostSheep]

See a local independent financial adviser.

They can find mortgages that aren't offered by the banks on the High Street.

Good idea if your bank or existing mortgage lender can't help.

[vicars]

If you have reasonably bad credit then forget the banks, you need an adverse lender that can re-mortgage your property. Saying that, many adverse lenders could give you a loan between 5.9-7% in year 1 and this may be fixed for up to 2 or 3 years before going to a higher rate. A loan will increase your payments while a mortgage will give you breathing space as you can pay it on an interest only basis. However you should plan to change the mortgage back to repayment when you can afford it and you have got more control of your finances. I would recommend you get a credit report from Experian or Equifax and take it to 2 mortgage brokers who do not charge fees. Tell them the one who gets the best rate will get the deal and believe me they will try their hardest - nothing like a bit of competition. Please remember though that have a relatively simple situation - if they start to make things sound complicated say thank you and find someone who you feel comfortable with. I would love to help myself as I am a mortgage broker but that would be a bit naughty trying to get business from here ;-) If you want to goto a lender directly you could try Birmingham Midshires as they have a range of deals depending on your credit or GMAC is another company that should lend to you. If your income can cover a mortgage I really think this is the best option as it will bring your repayments to an absolute minimum. Post a reply if you need more help. Best of luck.

[Peahead66]

Hi. http://www.debtquestions.co.uk/forum/index.php3 best place for your question if you want proper advice.