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Practical tips to help you improve your credit rating and avoid expensive high interest loans

Can Borrowing Money Ever Help To Repair Your Credit Score?

Is your credit score giving you cause for concern? The pressure associated with a declining score can be almost overwhelming as debt can often begin to build and financial options become limited.

The common thought is that taking out more credit is the worst thing to do if you have declining score but in this article, we discuss how applying for the right option may actually be help you to repay your outstanding debts and take steps towards rebuilding your credit rating all at once.

Don’t let the pressure build

Despite what you may think, debt is not just a financial issue. With the ability impact every aspect of your life, finding a way out can only be good news.

The following article will help you to gain a better understanding of what may have caused the problems and what you will need to do to bring things back under control.

http://www.moneysavingexpert.com/loans/debt-help-plan#dc

Did you know that there are some types of debt which can actually be considered to be relatively good? The following video explains more!

Bringing things under one umbrella

One of the major problems surrounding debt is that it rarely builds in one place at a time. All it takes is a couple of credit cards along with recurrent bills and an overdraft that won’t quit and all of a sudden, you are paying money here, there and everywhere just to service your debt.

It is in situations such as these that the temptation to make just the minimum repayments each month can overwhelming but this is always a road to avoid wherever possible.

A better option relates to finding a way to bring all outstanding debts under one umbrella. With just one attached APR instead of many, you will find that you have a great chance of bringing debts under control. The method of managing debts is known as ‘debt consolidation’.

Exploring your options

It would not have been too long ago that the associated problems of debt would have rendered it next to impossible to access enough credit to bring debt under one roof.

However, thanks to the addition of specialist finance to the market, this option not only exists, it is realistic.

With some options offering the ability to borrow up to £10,000 which is repayable over up to 5 years, a number of associated benefits may be available, including:

  • Reducing the number of creditors you have to deal with
  • Reducing the overall level of interest which is repayable
  • Reducing monthly repayments to a level which you can afford
  • Avoiding further damage to your credit rating (IVAs and bankruptcy damage your credit rating).

Long term solutions

Whilst some solutions offer nothing more than a quick fix, this is highly unlikely to do anything more than paper over the cracks. However, longer term solutions offer a real opportunity to make a lasting difference.

By ensuring that all outstanding debts are repaid using the amount that you have borrowed and then repaying the outstanding balance of your loan as early as possible, you have a realistic opportunity to become debt free

A debt free legacy

As well as offering the chance to help you to repay debts, choosing the right option will also allow you to take positive steps towards restoring your credit score to ‘pre-damaged’ levels.

2 of the most important aspects of a credit report relate to decreasing overall debt and demonstrating an ability to make repayments on time and in full. Using an effective a debt consolidation tool, will allow you to do both.

If you are still a little unsure whether debt consolidation is the right step for you, the following Economic Voice article outlines 6 things which should be factored into the decision making process.

http://www.economicvoice.com/6-things-to-consider-before-applying-for-debt-consolidation/

 

 

 

Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

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