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Secured Loans And Remortgages Are Great Debt Consolidation Loans
Hassled by creditors everyday? Then perhaps it’s time to sit down and think about an appropriate solution that will make all your problems go away.
Being in debt can be painful. The ongoing harassment by creditors isn’t going to go away just like that. It’s up to you to do something about the situation. There are many approaches when it comes to debt management. One of the easiest ways is to take a good look at your existing assets. For instance, you may be the owner of a home that has acquired equity over several years. Maybe now is the time to cash in on that equity and solve your debt problems.
You can do so by either taking out a secured loan, or go for a remortgage.
What is a secured loan?
A secured loan is a loan that is backed by your existing assets. The exact terms depends on numerous factors such as the loan amount, the value of the assets, and the repayment terms. If you fail to pay back the money on time based on the repayment terms, the lender has the right to forfeit your assets.
What is a remortgage?
A remortgage is like having an extension for your existing mortgage loan. For instance, your home may be full paid up. But in order to raise the amount of money you need, you opt for a remortgage. The bank provides you with another home loan and you get a lump sum payment. You can use the amount of money you receive to pay off your debts and manage your finances. Of course, now you have to service a new loan. Note that you don’t have to wait for your home to be fully paid up to qualify for a remortgage. As long as your home has equity, you can opt for a remortgage.
Secured loans and remortgages are two options you can choose from. To find out which option best serves your interest, speak with a professional debt management consultant. They will be able to provide valuable advice. You will need to find out the prevailing interest rates for the amount of money that you will be borrowing. An appraisal on the property may also need to be conducted to find out the current market value of the property.
Some homeowners are fearful about pledging their property for a loan as they are afraid of losing their home. But look at it this way.
If you are in debt, and you are unable to meet your monthly payment commitments, you are going to lose your home anyway. So it’s better to take up a loan just to tide you over the current tough patch. Understand that this situation is only temporary – no one stays in debt forever.
When you borrow money to repay your debts, you are taking passive action. And that is commendable. The monthly repayments may also force you to stay focused on managing your finances. In the process, you will be developing better money management habits. That will help you to stay off debt once your current debts have been fully repaid.
Selling Your Home Yourself
Selling your home yourself is an option for anyone wanting to sell their home. Most people who utilize this option do not want to pay the commissions to an agent that can sometimes become very large. If this sounds like you, then there are some things to keep in mind.
First, you need to find out if selling your home yourself is really worth the amount that you would pay an agent to do so. Usually an agent will ask for around six or seven percent of the final sale. Which if you sell your home for $ 100,000 you are looking at paying $ 3000 or more to the agent. So, if you sell the house yourself you can save yourself this money. Furthermore, if the buyer of your home does not use an agent, you can end up saving even more money.
Secondly, you have to consider the amount of money you are going to have to pay to advertise your home. Most homes are put on the Internet now, so you need to factor in the cost of a website to sell your home, as well as putting ads in the local paper. You also need to consider the amount of time that you are going to have to put into these mediums. It will require that you do the leg work that normally an agent would do.
You also need to consider that you will need to be available for potential buyers to look at your home. Meaning that you may have to schedule appointments to show the house. If you work a very demanding schedule or are often out of town on business, then selling your home yourself is going to be much stressful. Therefore, it may be necessary to use an agent in these cases.
Setting the price of your home is another aspect that you must consider. Normally agents will tell you what the value of your home is, however, since you are not using one, this will have to be done on your own. You can find out this information easily by comparing your home to other homes in the neighborhood that are on the market, and then tweaking this a bit to ensure that your house is competitive price wise.
Selling your home yourself is no easy task, which is why so many people choose to work with an agent. Depending upon your situation, working with an agent may be the right choice for you. However, if you feel that you could do it yourself easily, then by all means utilize the option.
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