Bad Credit Debt Consolidation

Fred Hopper, a newly qualified teacher, has an annual income of £20,000. He had £15,000 of unsecured personal debt on store cards, credit cards, personal loans and a car loan, besides a £70,000 mortgage on a house near Liverpool and was paying £1,700 a month to service his debts even before considering utility bills, food and council tax. “I was regularly late on my payments and even missed some loan paybacks. As a result I had a poor credit score,” said Fred.

It is tough to fix bad credit when you can neither decrease your debt nor pay your bills on time. “I was looking for consolidating my debts as I thought it would provide me some amount of relief whilst paying my bills. But with a tarnished credit, I was not eligible to get a consolidation loan,” Fred believed. Nevertheless, Fred tried his luck with a few financial institutions but the consolidation loan offers put his car or house at risk. “And I was reluctant to sell my car or house” said Fred.

At the same time, Fred had heard a lot of criticism about debt management firms. “Critics say that enrolling in to a debt consolidation loan with a debt management firm leads to further deterioration of credit score because the first month's payment is collected as a fee, which immediately puts people one month behind in their loan repayments. In addition to this, in some circumstances, the debt management firms do not pass the monthly payments to the creditors leading to further defaults on loan,” feared Fred.

“I was awry of seeking advice or services from a debt management firm,” said Fred. But Fred’s friend Renee Gamble, also a teacher, had a different and positive story to tell. Renee, who was enrolled on a debt management plan with RedHouse Debt, advised Fred, “If you want to consolidate your debts, seek free and impartial advice from RedHouse Debt.” Fred did so and qualified for a bad credit debt consolidation loan from RedHouse Debt that not only helped him consolidate his debts in to one low monthly payment, it did not touch his assets either.

“For a modest monthly fee, RedHouse Debt negotiated lower interest rates with my creditors so that I can manage my monthly payments. The debt management plan from RedHouse Debt saved me money to start paying for the principal amount on my credit balances,” said Fred with contentment. So, in order to consolidate your credit or store card or other unsecured loans come to RedHouse Debt. RedHouse Debt’s free and independent debt advice is available online or through phone on 08000 147 407.