When your financial condition breaks down beyond repairs, you need to seek professional help as there is nothing that cannot be mended. You need to act wise and restrain absolutely for taking any quick fixes for your situation.
With bad situations beyond your means, you would require a long term credit help and a lot of financial discipline at the same time. Whether you need debt consolidation loans for bad credit or want to apply for a personal loan against a home equity the decision needs to be a learned one. The impact of a long term loan would stay for many years to come and thus you should think over all the aspects before applying for one.
Indeed it is recommended to apply for long term loans for bad credit situation with the help of a broker. It is a myth that the brokers work to conceal the borrowers’ money and add hassles in a deal. In a complete contrast dealing with a registered FCA loan broker could be completely easy as they do not charge anything from the borrowers. They help you take a completely fair decision without any obligation.
After you make a query, the broker would access your credit profile and ask questions about your requirements. Based on your needs, he would search for the closest available match for your loan requirements. They also guide you on loan repayment and credit management.
Let’s understand this with the help of an example.
Mr. John Fredrick who is an IT professional has exceeded his credit limit and has two open loan accounts of £50000 as a home loan and £10000 of a car loan. Amid uncertain circumstances he loses his job. His total unpaid loans amount to £48870 and he is using credit card limit up to £3000. His credit score was 550 (before job loss) despite regular repayments in the past.
With the loss of a job, Mr. Fredrick’s finances seem beyond repairs. With low score and no salary, who would give loan to him? Does it even make any sense to apply for a loan when you do not have an income source?
Well, Mr. Fredrick needs loan as he cannot afford to not pay the open loans as it will build a bad history which would be even more difficult to repair. Availing a loan would certainly help him get rid of mental and financial stress for some time. However until he plans the repayment of the loan, he cannot call it a solution. Here in it is important to apply for a right loan with affordable instalment.
Being an unemployed, Mr. Fredrick can search for long term loans for unemployed people on benefits. However to avail an unemployed loan for up to 50000 pounds without a guarantor or collateral would not be practical.
Herein the solution would lie in a consolidation loan. By consolidating a loan, he would be able to make his current loan affordable and conceive the repayments on time. He should first of all clear the balance of the credit cards as the rate of interest is generally higher than the other loans.
Next point in concern here would be to look for an alternative loan to meet his basic requirements. He can either apply for short term unemployment loan along with long term personal loan as a consolidation loan or look for bigger consolidation loan and prepay the loan as he gets the job. He can ask for delayed repayment of loan as well.
With the help of a loan broker, Mr. Fredrick can thus ease his financial troubles and get back on the track as soon as he finds a new job.