Video transcriptHomeowner loans could help consumers draw a line under any debts they`ve built up through mismanagement of their credit cards if they are unable to continue to meet their credit card or personal debt commitments.
This comes as Martin Wheatley, the head of the Financial Conduct Authority (FCA), suggests that credit card firms are accentuating some people`s problems. He queries `why are card issuers providing the means… for the most indebted consumers to escalate their way into further debt?`
Mr Wheatley`s comments come as the FCA announces further details into its inquiry into the credit card market, which is set to start at the end of the year. It`ll focus on how well operators are providing for customers, particularly vulnerable ones.
The credit card industry has responded by indicating that credit card debt has fallen, but FCA figures show that nine million of us consider ourselves to be in serious debt and with spending on plastic increasing, this number could grow.
If your repayments are on top of you, you could look into homeowner loans as a way of pulling yourself out of a debt spiral. These secured loans pay off your unsecured borrowing-like credit cards and store cards-and leave you with a single payment to make each month. However they are secured on your home and carry the same risks as a mortgage so explore all other options too. Maybe you can look into debt management or even an IVA. Also don`t forget family or close friends may be able to help.
While interest may be greater over time, due to the length of the loan, the repayments will be smaller as that is the primary reason that you would be looking at this route, so you`ll feel in more control of your money, as with many thinks it is about striking the right balance. If you wish to look at secured homeowner loans as an option please give us a call or enquire on line.
Discover more at firstchoicefinance.co.uk or call us on 0333 003 1505 or 0800 298 3000.
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