Debt Consolidation To Avoid Bankruptcy

Bankruptcy is a serious, public, legal process. Consider a debt consolidation loan to keep bankruptcy at bay.

For many people, their financial problems often come through no direct fault of their own. Redundancy, ill health, divorce and bereavement are all life circumstances which can have a serious effect on your finances and, no matter how hard you try, it can be difficult to get back on track. If you’re really suffering, you might be considering bankruptcy as a way to clear your debts for good. Before you commit to this process, however, make sure you’ve considered all the other options available to you – particularly the debt consolidation loan.

Debt consolidation vs. Bankruptcy

What are the pros and cons of debt consolidation as opposed to bankruptcy? There’s no doubt that it’s very difficult and stressful to be in debt, but bankruptcy should always be your last option:

• Public – bankruptcy is a public process. If you are declared bankrupt or you declare yourself bankrupt, your details will be published in your local paper, and everyone will be aware of your financial position.

• Control – you lose all control of your finances when you become bankrupt. An administrator is appointed to make sure your debts are cleared, and they can sell your house and some of your possessions to do so, as well as using any savings you have and a proportion of your income if you have any. You will be left with enough money and possessions to live on, but everything else will go towards paying your debts.

• Credit record – your credit record will reflect your bankruptcy for a number of years – even after your debts have cleared. This means that it’s very unlikely that other lenders will consider offering you loans or credit in the future.

A debt consolidation loan, on the other hand, allows you to raise a single sum of money which will cover all your debts. You can pay off your lenders, and be left with just one loan and one monthly payment. You are in full control of your finances, you’re able to budget more easily, and your credit record will show that you have repaid your debts. No-one needs to know that you’re in financial trouble at all.

If you are looking for a debt consolidation loan, let the experts save you time and money by finding the right product for you. Homebank has only the best mortgage consultants ready to advise you on all your mortgage and insurance needs. For useful debt consolidation loan advice, call us to arrange a no obligation appointment to suit you. Homebank is the ‘people’s mortgage broker’ with over 3500 mortgage products to choose from, including products that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal product for you – call us now on free phone 0800 052 3604 or enquire online.