Homeowners could look towards paying down their debts if they have the cash flow or the money sitting in a bank or building society with a much lower interest rate than your debts.
However if you cannot do it that way and need to improve your debt position you could try to do it through a debt consolidation loan.
This may affect more people in certain scenarios as it emerged that low income families are getting into financial straits as they try to keep up with the rising cost of living.
Campaign group Real Life Reform has found that some of the poorer households are racking up debt at a rate of £52 a week, meaning that the total is just under £3,000.
That`s gone up 29 per cent since October, which is the equivalent of £670 more debt.
Those surveyed blamed welfare reforms like the bedroom tax for their woes, with almost half saying they have no money left after rent, food and bills have been paid for.
The survey also indicated that these families find heating and fuel more expensive, while a third can only afford to spend less than £40 a week on food.
Andy Williams, Real Life Reform`s chairman, remarks that "householders are falling into more debt, including some taking money from loan sharks, and it`s a real concern that people are having to borrow to cope with the cost of everyday living".
Instead of struggling, you could look to pay off your unsecured short-term loans by taking out a single, longer-term one.
It may mean you pay more interest in total, but your monthly repayments will be reduced, so you can stem the regular outflow of cash you have to pay.
As with all financial affairs it is key to strike the right balance and only borrow what you can afford to pay back.
First Choice Finance is a credit broker who are tied to specific loan providers.
If you choose us to help you we will look at our options versus your loan requirements for you.
Find out more at firstchoicefinance.co.uk or call us on a landline ringing 0800 298 3000 or call 0333 003 1505 from your mobile.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.
Your questions on?poor credit mortgages?answered by a qualified mortgage adviser at First Choice Finance with access to specialist mortgage plans we may be able to help where the high street banks have failed.