>Bad Debt Personal Loans?Easy way to finance your needs Posted by nick_niesen on November 8th Cam Talbot Jersey , 2010
Bad debt is no more considered a blot on credit report of an individual. Lenders now know that majority of the people fall into bad debt trap for no fault of theirs. Many lenders now offer loan to people with default, arrears or bankruptcy. So even if you are going thorough a lean phase you can avail a bad debt personal loan for a variety of purposes like buying a car or going on a holiday.
Borrowers, however, use bad debt personal loan mostly for paying off previous debts. In fact, previous bad debts are of big concern to any borrower and he wants to get rid of them as early as possible for different reasons. One reason may be that the debt was taken at a higher interest rate, which is crushing the borrower financially because of the larger outgo. On availing new personal loan at a lower interest rate, he can pay off those previous bad debts himself or can ask the new lender to do the job. Moreover one saves valuable time that goes waste in going around to visit the different lenders just to pay the installments. Those bad debts may also be impacting the creditability of a person adversely. To improve it, there is no other better way than to take bad debt personal loan. A better management of previous debts surely helps him in many ways.
However, lenders usually become cautious while offering loan to such borrowers because of their previous bad debts. To assure the lender that he can safely lend the money, the borrower shall have to put some property as a collateral with the lender.
Any property such as home, car or even a saving account serves as a collateral. When opting for a secured bad debt personal loan one makes use of the equity in the property without selling it. This enables the borrower in not only getting the desired rate of interest but the required amount as well.
Usually lenders provide bad debt personal loans in a range of £5000 to £75000.If the borrower is in need of a higher amount then the lender will look for the value of the property placed as a collateral. Higher the value, higher the amount one may get as loan.
Lenders offer loan to such borrowers for a period of 5 to 30 years. This long duration enables borrower to choose a repayment term that suits him the most. However, lenders usually give maximum repayment term to those borrowers whose collateral in the form of property is of higher value.
But, it is the interest rate that is of main concern to a bad debt personal loan seeker. The lender offers bad debt personal loan at a higher interest rate, as risk potential in such loans is higher. But there is a solution to this problem. Such borrowers can extract a lower interest rate if they put down some more cash payment. So, one strategy is to save as much as possible for a down payment. This way the interest rate may come down to desired level.
For bad debt personal loan seekers it would be good if they compare rates of interest of different lenders to get a rough idea of which lender has a competitive package for them. The interest rates are offered online by many lenders. Once you have compared the rates you can request specific quotes from a handful of lenders.
These tips may be of a big help to borrowers who have bad debts and are looking for a new lender to finance their requirements. They can hunt for lower interest rate and larger amount as well.
Cheating the consumer is a very common practice in most parts of the world. Innocent consumers fell into the trap of greedy business men and suffer various types of losses. But, hardly any practice can continue forever.
As per the Changing Times
Every government in order to protect their poor citizens from this fraud has formulated a law, popularly known as the Consumer Fraud Act. This helps the consumer to lodge a complaint against that targeted business person, who has targeted him.
Some of the Cases, which are covered by this Act鈥檚 are as followed
As the consumer purchases a product and after purchasing it found it not working as advertised, then it can be considered as a fraud cause.
If the product is Defective
Real Estate is a case of fraud
If fake statements are used for noble causes
Insurance company denying insurance coverage
In order to protect the consumer from these unto wards events and practices it is very much necessary to go for Consumer Protection Laws and seek the advice of the legal adviser, since it will help you to guide you to take action against that fraud person. It is generally to give consumer protection from any untoward eventualities.
The main aim of the Consumer Fraud Act is to provide the consumer with all types of protection and also to ensure every type of product safety. This is by providing the consumer with all round of protection from the hands of the possible cheaters. Another area, where help is required is when the consumer fails to repay back their loans in time. These types of consumers suffer harassment from debt collection agencies in order to repay back their loan. Consumers will seek protection from the Consumer Protection Laws in the occasion of severe financial crisis. Many people take undue pressure in repaying their loans.
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06.09.2019 07:47
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