Debts
Consolidation Loan (Risky Business)
Some people think debts are only from credit cards and store cards, wrong. You might have started out with a loan from buying a car and the loan company has provided you with even more money to borrow 2 years later. Later on as the years pass you get injured and with the loan company ringing you every month to remind you to pay your monthly payment, “which I believe to be wrong”.
You now have to change your job because you cannot do the same work (job) you were doing before because of your health problems. You get in contact with Citizen Advice Bureau for help, after failed attempts with your loan company. They phone the loan company to find out why they cannot reduce your monthly payments and notice how high the interest charges are and how expensive the insurance is for protection cover on the loan.
The citizen Advise Bureau tells the loan company to accept the payments, but they refuse saying he could sign up for another loan extending the monthly payments paying more over a longer period. The Citizen Advice Bureau get in contact with Trading Standards who say there is a loop hole in lending and some loan companies are exploiting it with vulnerable people in society and this loan company is known to them. And to other Debt Advising Agencies. Till the system is changed, this will continue to happen.
This whole thing leads to separation in a relationship and in some marriages, divorce. You see there are a number of things that can be changed only if the government can only listen to advice from Citizen Advice Bureau’s and other agencies trying to improve the causes of debt.
When you owe £10,000 or more, it should make sense to consolidate your debt into one big manageable loan. But this doesn’t happen because due to the lengthy period to repay the loan means you will be paying more at the end of your payment period. It can cost as little as 7% and may halve your monthly re-payments.
A survey by Comparison Websites, moneysupermarket.com found two-thirds of borrows with consolidation loans end up owing even more money.
You are attracted to the low monthly repayments to borrow more. Which I believe to be wrong, very wrong.
I think it’s better to go to court to resolve the problem with your loan rather than sink further into debt. Some loan company’s are sharks and there are plenty of them out there after people’s homes and some people who don’t know who to turn to should write to the BBC or call the Citizen Advice Bureau, it’s always good to get in touch with the Department of Fair Trading, to get advice.
National Debtline on 0808 808 4000.
Remember you don’t need to consolidate your loan just because you are offered low monthly payments to be repaid over a longer period.
You really don’t need a degree to know what the problems are in society today.
Teenagers are now joining the problems in with loans and debts.
