 |
Use The Council Bonus To Consolidate Your Debts |
|
|
Submitted by Cheryl Adams
| RSS Feed
| Add Comment
| Bookmark Me!
Many tenants who buy their rented council property under the Right To Buy scheme are unaware that if they have other debts, these can be paid off by taking a loan out against the equity in their property.
When Mr. H. from London bought his rented council house last year, he had other financial commitments that he was also paying off – a hotch-potch of debts (credit cards, store cards etc) on which he was paying high interest charges.
Mr. H was unaware that, like many people who get a mortgage under the Right To Buy scheme, his property was worth much more than the mortgage he had on it (he paid £35,000 for his home and it was valued at £190,000).
Because he had all this equity in the property, Mr H. could have taken out a debt consolidation loan (which would be secured against his property) to clear his other debts, meaning he’d be paying lower monthly repayments and lower interest charges. This is because a consolidation loan should reduce the amount of interest currently being charged on other debts.
Also, he would have been paying just one manageable monthly outgoing for the loan repayment as opposed to a myriad of monthly demands, which can have a physiological benefit.
If you have equity in your property, whether you bought it under a Right To Buy scheme or under a standard mortgage scheme and you have debts you want to consolidate, a debt consolidation loan could be right for your circumstances.
However, do bear in mind that as with all secured loans, it will be secured against your home. This means that should you fail to keep up the repayments and fall in to arrears, the lender can have force you to sell your home in order to get their money back.
|
|
|
|
|
LinkedIn Recommendation:
 Jacqueline Riech - Desk Clerk at Data Systems - I am flying out to DC next month for one of Teo's seminars. Great stuff online, but I really want to meet him... nobody has done more for my business and I can't imagine anyone really helping they way he does. Just straight to the point information, and none of the fluff! I think he should be a life coach! - March 17, 2012, Jacqueline was Teo's client |
|
Featured [Debt Consolidation] Articles:
|
|
