Irishchappie
Registered User
- Messages
- 113
Hi there,
A mate of mine seems to have acquired a fair amount of debt through credit cards, loans, overdrafts etc.. Basically living beyond his means and being generally irresponsible with his spending. So far hes managing to cover them but with todays current economic climate anything could happen.
I think he should consolidate but he seems a bit reluctant, so need to get some info together to try and help hims see the sense before he really gets himself in some trouble, defaults on payments and ruins his credit rating.
He inherited a house from an uncle who passed away a few years ago and only borrowed a relatively small amount mortgage wise to modernise the house, new kitchen, bathroom, carpets, built a detached garage etc.. so all in all he borrowed less than 100k and the house is worth considerably more than that even in todays markets.
One option I'm thinking is a secured home loan. Lower interests rates than standard loans and plenty of security there for him to borrow against.
I'm wondering, how are banks dealing with these in todays climate? Are they willing to give them out for debt consolidation? I've never applied for one so not sure how they work.
What type of paperwork do they require apart from the usual proof of income etc? Are a copy of the deeds of the house required?
I think his best bet is to lump all his debts it all into one, clear the credit cards and cut them up, clear overdraft loans etc and basically start saving..
Any advice would be appreciated.
I.C
A mate of mine seems to have acquired a fair amount of debt through credit cards, loans, overdrafts etc.. Basically living beyond his means and being generally irresponsible with his spending. So far hes managing to cover them but with todays current economic climate anything could happen.
I think he should consolidate but he seems a bit reluctant, so need to get some info together to try and help hims see the sense before he really gets himself in some trouble, defaults on payments and ruins his credit rating.
He inherited a house from an uncle who passed away a few years ago and only borrowed a relatively small amount mortgage wise to modernise the house, new kitchen, bathroom, carpets, built a detached garage etc.. so all in all he borrowed less than 100k and the house is worth considerably more than that even in todays markets.
One option I'm thinking is a secured home loan. Lower interests rates than standard loans and plenty of security there for him to borrow against.
I'm wondering, how are banks dealing with these in todays climate? Are they willing to give them out for debt consolidation? I've never applied for one so not sure how they work.
What type of paperwork do they require apart from the usual proof of income etc? Are a copy of the deeds of the house required?
I think his best bet is to lump all his debts it all into one, clear the credit cards and cut them up, clear overdraft loans etc and basically start saving..
Any advice would be appreciated.
I.C