Month: September 2021

Personal Loan Debt

Why is Unsecured Debt Bad?

Unsecured debt, like a personal loan, is a very straightforward way to borrow money. You received an amount of money from the lender and you agree to pay that money back in instalments along with any interest.   Some of the negatives that are associated with unsecured loans are that, since they are not secured against any assets, the …

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Secured Loan Debt

What is a Secured Loan?

A secured debt can fall into two main categories:  The first involves the borrower putting forward an asset of theirs, usually their house or property, as collateral for the loan. This means that should the borrower no longer be able to pay the loan, the lender can ‘possess’ the property and use its sale as a …

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Mortgage Rent Debt

Can I Get a Mortgage with Mortgage Arrears?

The answer to this will largely depend on your lender. Some lenders are stricter than others…  So, in effect, the answer is ‘yes’ you could get a mortgage. Another factor that can come into play is, how many missed payments you have and how old they are. If you have 1 or 2 missed payments, then this is unlikely to cause too …

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Hire Purchase

What Happens if I Don’t Pay Hire Purchase?

Hire Purchase is most commonly used to buy cars; however, some businesses will use it to purchase expensive equipment. As long as you consistently make your repayments, once your payment term has ended, you will own the item outright.   But, if you continually miss payments, then the consequences can be severe. Here are the steps your lender is likely to take:    Payment Reminder- …

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Secured Loan Debt

Is Secured or Unsecured Better?

Finance agreements and debts generally fall under two categories: secured or unsecured. Secured debt means that you have offered an asset as collateral, should you fail to pay the debt.  So, for example, if you took out a loan secured against your house and you failed to pay the debt, your house would be at risk of repossession.     …

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IVA Trust Deed

How Does a Trust Deed Work?

A Trust Deed is a legally binding agreement between you and your creditors to pay back a portion of the money you owe over a set period of time (usually 4 years). At the end of the agreement, if you have followed the conditions of the arrangement, any remaining debt will be written off.  A Trust Deed needs to be …

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Bankruptcy Sequestration

What is the Purpose of a Sequestration Order?

Sequestration is a form of bankruptcy that is only available in Scotland, however it is very similar to the version of bankruptcy available in the rest of the UK.  Sequestration is a form of insolvency designed to be used as a last resort, when a person is completely unable to repay their unsecured debt. You can enter into sequestration voluntarily or …

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