Bennett Jones can provide you with the support you need to keep these debts under control, offering information on how to make the necessary repayments.
Secured loan debt
Many people take out a secured loan when making a high-value purchase – like an extension to a house, or a car. These loans are often available with low interest rates, making them a viable method for quickly raising funds at an affordable cost. However, borrowing money this way does put your own assets at risk of repossession if you can’t fulfil the repayments. Any action taken by creditors can also damage your credit score.
If you have multiple forms of debt, secured loans should be your priority for repayment. Good communication with your lender can prevent costs being added on, and, in some cases, they may even grant you a repayment extension. If the lender is aggressively pursuing their money though, our team can provide information on what to do next.
Mortgages are long-term loans secured against property. If you end up missing mortgage repayments, your lender will soon be in touch to ask why. Whatever the reason, it’s important to be responsive to their phone calls, letters or emails.
If you’re threatened with repossession or court action, act quickly by getting in touch with our advisers. At this point in the process, assistance is vital.
Credit card debt
All it takes is a few missed payments or going over your spending limit, and you could find yourself in hefty credit card debt. Whilst credit cards are a form of unsecured loan (meaning you can’t have your assets repossessed), failing to repay can still have a negative impact on your credit score.
In order to keep on top of your credit card debt, consider setting up a standing order every month so you don’t miss repayment dates, and take advantage of comparison sites to find cards with lower interest rates.