UK loans for private and council tenants – bad credit loans for tenants
Alternative approaches to tenant loan debts
What is Debt Management?
Debt management is offered by specialist companies who are skilled at offering consumers, including tenants, expert advice and possible solutions to their debt problems for a monthly fee. Whether you are a council tenant, private tenant or living at home with parents, this type of service is available to you.
If you are a tenant and are unable to pay your loans on time, or feel that your financial situation is out of control, debt management services, if employed, will negotiate with your creditors to possibly freeze interest charges or initiate a loan payment holiday in order to reduce the debts and enable you to manage your borrowing. Quite often a plan is devised to suit an individual’s circumstance.
Tenants using this service will need to provide detailed income and expenditure information to the debt management company. Once the plan has been agreed with you regarding the debt management’s proposals to manage your debt, contact is made with all creditors to find out borrowing terms and conditions and what is owed. Once this has been established, the debt management company will then renegotiate loan payments on your behalf so payments under the plan can begin.
Reasons for accumulating debt
Quite often an individual’s circumstances can change overnight and all of a sudden, expenditure starts to exceed income. Lifestyle events such as job redundancy, expensive divorces, unexpected school fees and failing businesses are just a few of the reasons causing debt to spiral out of control. Late overdraft, loan or credit card payments are often penalised with high charges, some of which may be recorded with credit reference agencies, which can lead to a bad credit history. Continuing to borrow is not always the best answer and may not be possible, hence the reason for debt management companies and their unique service to consumers and tenants alike.
Please Note! YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. ALL SECURED OR UNSECURED LOANS ARE SUBJECT TO STATUS. SECURED LOANS ARE SECURED ON PROPERTY.
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